Business, Legal & Accounting Glossary
The Upside Tasuki Gap candlestick pattern occurs in a strong upward market, starting with a bullish long day (long body) candlestick. The second day gaps up and is also a bullish long day candlestick. The third day is characterized by a bearish candlestick which opens well into the body of the second day and partially fills the gap between day 1 and 2. The third day, called the correction day, does not completely fill the gap but closes in the gap.
The first two days of the Upside Tasuki Gap is considered a very strong price movement. The third day results in temporary profit-taking. Since the gap from day 1 is not filled, it is expected that the previous upward trend will continue. A confirmation on the fourth day is recommended in the form of a bullish candlestick, a large gap up or a higher close. The Upside Tasuki Gap candlestick formation is rarely seen.
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This glossary post was last updated: 22nd March, 2020