Bullish Upside Tasuki Gap Pattern
BULLISH UPSIDE TASUKI GAP PATTERN (BUTGP)
Day 2’s gap is not fully closed
1. Market is on an uptrend;
2. There are two long white sticks with a gap between them;
3. Day 3 has a black candlestick within the second day’s body;
4. Day 3 closes into the gap but does not fully close the gap.
The BUTGP comes out in a strongly upward market, where the bulls continue to move one more day. On Day 3, there is a black stick which shows that there is temporary profit taking. On this correction day, the gap is not completely filled, so the previous upward trend should continue.
This pattern is similar to the Bullish Upside Gap Three Methods Pattern (BUGTMP). The difference is in the BUGTMP, the gap between Day 1 and Day 2 is filed on the third day.
1. The pattern is a rare formation
2. The bodies of the Day 2 and Day 3 sticks are more or less of the same size
3. A confirmation on Day 4 is suggested (through a white candlestick, a large gap-up or a higher close).