Definition
Bullish Upside Tasuki Gap formation consists of three candles. The first long white candle is followed by another long white candle in the trend’s direction. The third candle is black, closing the day in the gap between the first two days. The black candle signals a temporary profit realisation. The formation means the continuation of the trend.
- Trend: Continuation
- Expected trend: Bullish
- Previous trend: Bullish
- Reliability: Low
- Type: Bullish
- Number: 3
Recognition
- The market is in an upward trend.
- The first two days are long white candles with a gap between them.
- On the third day, the share opens within the body of the second day’s candle.
- The third day closes in the gap between the first two days.
Interpretation
The ascending trend accelerates. This is confirmed by the gap between the first two days of the pattern. The third day is about profit realisation. On the third day, the share opens within the body of the second day’s candle. The first day is characterised by low trading volume. After the profit realisation, the trend will continue.
Important factors
Bullish Upside Tasuki Gap is a very rare formation. The first two candles have similar body sizes. Bullish Upside Tasuki Gap formation is similar to the Bullish Upside Gap Three Methods formation. However, in the Bullish Upside Gap Three Methods formation, the gap is filled out by the third candle. The formation has a medium reliability, verification from another source is needed. The confirmation could come from a white candle with an upward gap or a higher closing price.
