Downside Tasuki Gap

You can think of the Downside Tasuki Gap as a precursor to the ski slope for stocks. The Downside Tasuki Gap is a candlestick pattern that typically precedes downward stock trends.

What’s the secret sauce of the Downside Tasuki Gap? It’s a candlestick pattern where the first two bars are red (which means downward) followed by a third that is white (which means upward). The first red shows a downward trend, the second is far below the first with a gap in between, and the third bar (the white candlestick) is hovering somewhere within the gap of the first and second.

It’s basically the beginning of a downward trend, and the first upward “blip” as the stock tumbles downward, with little upward blips as it falls. Down, down we go.