I commence with my humblest gratitude to The Most Benevolent, The Ultimate All-Knower. The words of following material is borrowed from the internet (Candlestickforum).
Downside Tasuki Gap
Description
The Downside Tasuki Gap is found during a declining trend. A black candle forms after gapping down from the previous black candle. The next day opens higher and closes higher than the previous day’s open. If the gap is not filled, the bears have maintained control. If the gap was filled, then the bearish momentum has come to an end. If the gap is not filled, it is time to go short.
Criteria
- A downtrend is in progress. A gap occurs between two candles of the same color.
- The color of the first two candles is the same as the prevailing trend.
- The third day, an opposite color candlestick opens within the previous candle, and closes below the previous open.
- The third day close does not fill the gap between the two candles.
- The last two candles, opposite colors, are usually about the same size.
The Japanese put significance into gaps. When one appears in the middle of the trend and is not able to fill itself on strength the next day, the momentum is still in the downtrend. The bounceup day should be construed as being a short-covering day. After the short covering disappears, the selling continues.
Gap above the last candlestick bar, shall violate the pattern. Instead, it shall become another pattern, guess what?……………… Yes, you are right. “Island Cluster Reversal“.
Please see my previous posts to refresh what does Island Cluster Reversal means, recent decline was started from it.
http://trade-in-harmony.blogspot.com/
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