Downside Tasuki Gap

A Downside Tasuki Gap is a candlestick pattern used by traders to confirm that an established downtrend will continue.

It occurs when an asset’s price demonstrates brief signs of recovery. The shape of this recovery is identified as a signal that the price will carry on falling.

Downside Tasuki Gaps are made up of three distinct candlestick shapes that appear during a period of descending price action.

Firstly you get a large downward candle, followed by another large downward candle that gaps down from the first one.

Finally, a third upward candle gaps up and trades in the price action area between the first and second candles, closing in this range.