Serial Candlestick: Tasuki
Tasuki Pattern is a combination of a gap or a gap or a window between two candlesticks. In Japanese candlesticks, the gap is called a window and occurs when there is a gap between two consecutive candlesticks, including its shadow. If the shadows touch each other, it can not be called a gap even though the real body candle is not touching. The gap should be between the shadows as well.
A gap can be a gap up or up, ie bullish and is often called Upside Tasuki Gap, or down or down gap, which is bearish and is often called Downside Tasuki Gap. Two candlesticks after the gap are expected to confirm the completeness of Tasuki’s pattern. This candlestick may not close or fill the gap.
Upside Tasuki Gap pattern, the pattern with the top gap where the first candlestick that follows the gap should be a bullish or rising candlestick. Followed by a dark candlestick, the bearish open level is inside the real body candlestick before. The second candlestick must be closed under the first real body candlestick but should not close the gap. If the second candlestick closes the gap, then the pattern is invalid. Candlestick may or may close the gap but not the second candlestick. The upside gap should be considered as the support and the next two candlesticks to close the gap and break the support, an indication of the bullish market trait.
The opposite is a Downside Tasuki Gap pattern, a pattern with a bottom gap where the first candlestick after the gap should be dark or bearish candlestick. Then followed by a bullish or bullish candlestick that the open level is inside the real body of the bearish candlestick. The second candlestick should close above the first real body candlestick without closing the gap. The bottom gap is an indication of bearish sentiment with a gap that serves as resistance. The bearish indication is confirmed by the failure of the next two sessions to close the gap and break the resistance.