Upward Gap Tasuki

In the uptrend, price gaps higher and forms the bullish session. The low price of the candle is higher than the high price of the previous candle, hence there is a rising window in the uptrend. In the next candle, price gaps down and opens lower than the previous closing price. The opening price of the candle is within the body (Below the closing price and above the opening price) of its previous bullish candle.

It turns out to be a bearish candlestick pattern which closes lower than the previous candle body. The price action is bearish. This formation is known as an Upward Gap Tasuki Pattern, it is a bullish pattern!

The rising window in uptrend is a major reason why this pattern is bullish. The bullish candlestick pattern with rising window is followed by a bearish candlestick pattern which opens within the body of the previous candle and closes below it but the rising window remains intact. It is a pullback pattern that provides opportunity to participate in the uptrend.

This price pattern is bullish unless rising window gets closed and price sustains below it. The body of last two candles of the pattern should be similar in size.

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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

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