Table of Content

Upside Tasuki Gap Candlestick Pattern in Trend Trading

This article explores the Upside Tasuki Gap candlestick pattern and its use in trading with examples.

 Tasuki Gap is a type of candlestick pattern that is often seen in Japanese candlestick charts. This pattern can frequently provide clues about the direction of price movements in the market and whether the current trend is likely to continue. These patterns in candlestick charts clearly reflect price movements and can provide us with an understanding of possible market movements. In this article, we will take a look at the "Upside Tasuki Gap" candlestick pattern.

Upside Tasuki Gap candlestick pattern illustration
Upside Tasuki Gap pattern

  • Topic: Upside Tasuki Gap
  • Type: Bullish
  • Trend direction: Continuation
  • Opposite pattern: Downside Tasuki Gap


The Upside Tasuki Gap candlestick pattern is commonly observed among formations in financial markets. This pattern often indicates the possibility of a continuation or strengthening of an uptrend. The Upside Tasuki Gap candlestick pattern can be defined as a three-candlestick bullish continuation formation within an upward trend. The pattern consists of the following candles:

First Candle: Long, upward (green or white) body.

Second Candle: Short or long, upward (green or white) body. It opens above the body of the first candle, leaving a gap.

Third Candle: Short or long, downward (red or black) body.

The formation of the Upside Tasuki Gap candlestick pattern on a price chart shows that the bulls are in control and that prices could rise further. This pattern serves as an indication that the current upward trend may continue.


The Upside Tasuki Gap candlestick pattern can be used to identify possible uptrends in trading or to confirm an existing uptrend. By analyzing this candlestick pattern, we can assess the current market trends and use the signals of these formations to identify probable entry or exit points.

Buy: Following the formation of the Upside Tasuki Gap candlestick pattern, we can anticipate the next candle to open above the body of the previous one. This upward movement of the new candle over the previous one may indicate the continuation of the bullish trend or possible further price increases.

Stop Loss: The stop-loss order is typically placed below the body of the first candle or below the gap level. This is a measure taken to minimize future losses, while signaling that prices are moving in a downward trend.

Target: A level up to twice the length of the pattern's body can be set as the target. When determining the target, considerations may include risk-to-reward ratios, support and resistance levels, other technical indicators, and overall market conditions. This is because setting a target is necessary not just for a specific pattern but to establish a strategy aligned with the overall market trend.

A trading example on the SP 500 Index chart demonstrating the continuation of the uptrend with the Upside Tasuki Gap pattern is presented below:

Trading example illustration of uptrend continuation with Upside Tasuki Gap pattern on SP 500 Index
Upside Tasuki Gap Pattern on S&P 500 Index

Please note that patterns such as Upside Tasuki Gap in the Forex market may not be sufficient as a trading strategy on their own and their reliability may vary. This pattern should be used in conjunction with other technical analysis tools and market conditions and should be seen as an element that supports trading decisions.

Post a Comment