The Tasuki Upside Gap pattern is a 3-candle bullish continuation pattern. Its counterpart is the Downside Tasuki Gap.
The bearish equivalent to the Tasuki Upside Gap is the Tasuki Downside Gap.
The Tasuki candlestick pattern is composed of a price gap followed by two candles.
The gap occurs to the upside and it’s important that the gap be definitive in that the body’s as well as their wicks are not touching. If the wicks of the gapped candles overlap then it is not a valid Tasuki candle pattern.
For the bullish Tasuki Upside Gap, the first candle should be a small bullish candle.
The second candle should be a bearish candle of equal or greater size and close above the body of the first candle.
Remember, if the second candle moves up and closes the price gap, then this is not a legitimate Tasuki pattern.
The bullish Tasuki gap indicates bullish sentiment, and so the gap is a great place to put a reliable support level.
The problem with the Tasuki candlestick pattern is that it’s pretty difficult to find. And according to Bulkowski’s testing, the Tasuki Upside Gap candlestick pattern has a 57% accuracy.