What it looks like
In a rise, an up candle, then a second up candle that opens above the first one's high, leaving a gap (empty space with no trading). The third candle is a down candle that opens inside the second candle's body and closes inside the gap, but not below the first candle's high.
What it means
The rise paused and buyers came straight back. Sellers tried to fill the gap and could not, so the gap still acts as a floor. It says the trend is still in charge and the pause was only a rest.
How to trade it
- 1
Confirm the market is already rising. In a sideways market the pattern means nothing.
- 2
Buy when price closes above the pattern's high.
- 3
Put the stop just below the pattern's low.
- 4
Target one to two times the stop distance, or the next ceiling.
- 5
Example: US30 gaps up at the cash open on the 1 hour chart; the pattern spans 160 points. A close above its high triggers a buy with a stop about 165 points away and a target of 165 to 330 points.
A close below the pattern's low.
Where it works best
On markets that gap, such as US30 and NAS100 at the cash open or after a weekend, inside a clear uptrend.
WickSpeak finds the upside tasuki gap automatically on any chart and names it on the candles that made it. It writes what it is, how to trade it and what proves it wrong right on the chart. Playbook can use it, or any of the 146 patterns, as a condition alongside up to 12 conditions on any of 12 timeframes, and backtest the play on past candles with your costs.
Common mistakes
- Looking for it on markets that trade around the clock and rarely gap between candles.
- Treating it as valid when the down candle closes the gap completely.
- Using it against the trend.
Related patterns
Questions traders ask
What is an upside tasuki gap?
It is a bullish continuation pattern: two up candles with a gap between them, then a down candle that dips into the gap but does not close it. The unfilled gap shows buyers still in control.
Why does it need a market that gaps?
The pattern is built around a real gap between two candles. Markets that trade continuously, like most forex pairs intraday, rarely leave one, so it shows up mostly on indices at the open.
What if the gap is filled?
If the down candle closes the gap completely, it is no longer a tasuki gap. The floor the gap provided has gone.
What cancels an upside tasuki gap trade?
A close below the pattern's low. That means the pause has turned into a real fall.