Downside Tasuki Gap Pattern
The Downside Tasuki Gap is a bearish continuation pattern that signals a potential continuation of the downtrend. It consists of three candles and indicates strong selling pressure, often after a gap down in price. This pattern suggests that the market is likely to continue moving downward.
Characteristics of the Downside Tasuki Gap Pattern:
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Formation: The pattern consists of three candlesticks:
- First Candle: A long bearish (red or black) candlestick that shows strong selling pressure.
- Second Candle: A gap down (the opening price is lower than the previous candle’s low) and also a bearish candlestick that confirms the continuation of selling.
- Third Candle: A smaller bullish (green or white) candlestick that opens within the range of the first candle but closes lower than the second candle’s close. This candle indicates that buyers attempted to enter the market but failed to sustain upward momentum.
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Location: The Downside Tasuki Gap typically occurs after a significant downtrend, reinforcing bearish sentiment and suggesting that the downtrend is likely to continue.
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Signal: This pattern indicates that despite a brief pause in selling (represented by the third candle), the overall trend remains bearish, and the market may continue to decline.
Identifying the Downside Tasuki Gap Pattern
To analyze and identify the Downside Tasuki Gap pattern, follow these steps:
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Load the Chart for the Asset:
- Open the platform.
- Load the chart for the specific asset you wish to analyze.
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Set the Timeframe:
- Choose an appropriate timeframe that fits your analysis needs. Daily, weekly, or other longer intervals are generally more reliable for spotting the Downside Tasuki Gap pattern.
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Select Candlestick Chart:
- Ensure that the chart type is set to “Candlestick” so you can visualize the patterns clearly.
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Use the Pattern Recognition Tool:
- Click on the FX Study section within the platform.
- Navigate to the Candlestick Pattern menu.
- Select the Downside Tasuki Gap Pattern from the available list of patterns.
- The platform will automatically highlight occurrences of the Downside Tasuki Gap pattern on your chart, making it easier to identify potential bearish continuations.
