Tasuki Gap
A Tasuki Gap is a three-candlestick continuation pattern that appears in a strong trending market (bullish or bearish).
π What Happens Inside the Pattern?
π’ Bullish Tasuki Gap (Uptrend Continuation)
πΊ First Candle (Bullish)
- Market is in an uptrend
- Strong bullish candle forms π
πΊ Second Candle (Gap Up)
- Price gaps upward
- Another bullish candle forms
- Confirms strong upward momentum
π» Third Candle (Pullback Candle)
- Small bearish candle appears π
- Tries to fill the gap
- But does not fully close the gap
π Final Outcome:
- Gap remains partially open
- Buyers still in control
- Uptrend likely to continue
π΄ Bearish Tasuki Gap (Downtrend Continuation)
π» First Candle (Bearish)
- Market is in a downtrend
- Strong bearish candle forms π
π» Second Candle (Gap Down)
- Price gaps downward
- Another bearish candle forms
- Confirms selling strength
πΊ Third Candle (Pullback Candle)
- Small bullish candle appears π
- Attempts to fill the gap
- But fails to close the gap completely
π Final Outcome:
- Gap remains open
- Sellers still in control
- Downtrend likely to continue
π Key Characteristics
βοΈ Three-Candle Pattern
β Trend candle + gap candle + pullback candle
βοΈ Gap in Direction of Trend
β Most important feature
βοΈ Partial Gap Fill Only
β Gap should NOT close fully
βοΈ Continuation Pattern β οΈ
β Not a reversal signal
βοΈ Appears in Strong Trend
β Essential condition
π‘ Psychology Behind the Tasuki Gap
This pattern reflects a strong trend with temporary resistance:
Phase 1 β Strong Trend Momentum π
- Market moves strongly in one direction
Phase 2 β Gap Formation β‘
- Strong conviction causes price gap
- Shows aggressive buying/selling
Phase 3 β Weak Counter Move βοΈ
- Opposite side tries to reverse
- But fails to fill the gap
π Meaning:
- Trend remains strong and intact
- Pullback is temporary
- High probability of trend continuation
π The gap acts as a support/resistance zone.
β Advantages (Why Traders Use It)
π Strong Continuation Signal
- Confirms trend strength
- Helps ride ongoing trend
π Clear Structure
- Gap + pullback + continuation
- Easy to understand
π Identifiable Setup
- Gap makes it visually distinct
π₯ Works Best with Confluence
Highly effective with:
- Strong trend
- Breakout zones
- Volume spike
- Moving averages
π Confluence increases probability
π° Good Trend-Following Opportunity
- Entry after pullback
- Strong continuation potential
β Limitations (Important to Know)
β οΈ Rare in Some Markets
- Gaps are uncommon in forex/crypto
- More common in stocks
π΅ Needs Clear Gap
- If gap is weak β pattern loses strength
π Context is Critical
- Must be in strong trend
- In sideways β unreliable
π¨ Full Gap Fill = Pattern Failure
- If gap closes completely β invalid
π Volume Confirmation Needed
- High volume = strong continuation
- Low volume = weak setup
π Pro Trading Insight
π‘ Tasuki Gap = βTrend is Strong, Pullback is Weakβ
π Best Trading Approach:
βοΈ Trade in trend direction
βοΈ Enter after pullback candle
βοΈ Use gap zone as support/resistance
βοΈ Confirm with volume + trend strength
π High-Probability Setup
- Strong trend β Tasuki Gap forms
- Pullback fails to fill gap
- Continuation candle + volume
π This creates a high-confidence continuation trade