Gaps and Gap Analysis

Downside Tasuki Gap

By March 17, 2016 December 1st, 2018 No Comments

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Beware Of The Black Candle

Before you can really develop a firm understanding of candlestick chart signals like the downside tasuki gap, it’s important that you become more familiar with the general uses and appearances of the candlestick charts themselves. In case you’ve never seen one before, they feature bar structures that indicate the day’s opening and closing prices with their edges. Connected to the edges of these bodies are lines, or shadows, which indicate the full range of prices, reached during that particular trading day. The downside tasuki gap is a particular pattern of candles that can indicate a bearish trend.

If you’re ready to start looking for the downside tasuki gap in your own daily monitoring charts, there are a few telltale signs that you can try to spot. First, look for a definite declining trend signaled by a red or black candle, as this is where the gap is most likely to show itself. Then, look for a gap to occur between two days and candles of the same color, most likely black or red as that is the color of the prevailing trend. Then, look for a white candlestick that will open within the previous candle’s range, and also close below the previous candle’s opening price.

Be sure you don’t fall into a common trading trap by getting excited and sending the price lower prematurely, because this will almost always result in a subtle retracement. When you see the white candlestick forming, you’ll know that the downside tasuki gap is entering a time of slight consolidation although the bears will ultimately continue to send the price lower.