For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Pattern: “Upside Tasuki Gap”.
Tasuki Gap
– Normally it should be a signal of continuation of the current Trend.
– You can find it in the variants: Upside and Downside, depending on the Trend in which is located.
Upside Tasuki Gap
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– The First Candle is long and white.
– The Second Candle is white, it gaps up from the First Candle.
– The Third Candle is black, it has the close within the Gap Up (So it has the Close above the Real Body of the First Candle). Whereas it has the Open within the Real Body of the Second Candle (For a further confirmation of the Pattern).
– Another confirmation of the Pattern: if one of the next Candles reaches an Higher High than the High of the Second Candle.
