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Abandoned Baby
Advance Block
Belt Hold
Breakaway
Dark Cloud Cover
Deliberation
Doji Star
Dragonfly Doji
Downside Gap Three Methods
Downside Tasuki Gap
Engulfing
Evening Doji Star
Evening Star
Falling Three Methods
Gravestone Doji
Hanging Man
Harami
Harami Cross
Identical Three Crows
In Neck
Kicking
Meeting Lines
On Neck
Separating Lines
Shooting Star
Side By Side White Lines
Three Black Crows
Three Inside Down
Three Line Strike
Three Outside Down
Thrusting
Tri Star
Two Crows
Upside Gap Two Crows

Downside Tasuki Gap
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Pattern: continuation
Reliability: moderate

Identification
A long black day is followed by a second long black day that gaps in the direction of the trend. The third day is white and opens within the body of the second day and closes within the gap.

The Psychology
In a downtrend a gap is partially filled. This is simply a profit taking scenario for the shorts and a sucker entry for dumb longs. We have a weak stock in a downtrend that bounces. As long as the white day is on lighter volume, the bears will most likely retake control soon after.

The bearish Downside Tasuke Gap is similar to the bearish Downside Gap Three Methods.



I wouldn't exactly say this is a good example of a Downside Tasuki Gap candle because I'd put it in the category of candle formations that form by happenstance. ANF was going nowhere with no clear trend, but nevertheless it does give the reader a glimpse at was this type of pattern could look like.

 

 

 

 

 

 

 

 



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