Downside Tasuki

Downside Tasuki

• Direction: Bearish
• Type: Continuation
• Reliability: Moderate


• First day is a red day
• Second day is a red day that gaps downward
• Third day is a blue day that closes within the gap of the first two days

The first two candles of this formation continue a downtrend with the second red candle gapping, suggesting strong bearish sentiment. A blue candle on day three indicates investors taking advantage of low prices to buying. But when the third days price action does not fill the gap created between the first and second days candles, traders take this formation as a sign that the downward trend may likely still continue.

But like so many moderate strength formations, candlestick analysts like to see additional confirmation. This confirmation of continued bearish trend could come in the form of another red candle upon day four