The Upside-Gap & Downside-Gap Tasuki Pattern are three-day trend continuation pattern(s). The Upside-gap Tasuki is a bullish continuation pattern and Downside-gap Tasuki is a bearish continuation pattern.
Upside-Gap Tasuki happens during an uptrend. Day1 is a bullish candlestick. Day2 is a smaller bullish candlestick that gaps up from the previous day. Day3 is a bearish candlestick that opens within the real body of the second day and closes below the real body of the second day and fills in some of the gap.
The psychology of the Upside-Gap Tasuki pattern is that Day1 and Day2 candlesticks confirm the previous uptrend. Day3 close price bearish candlestick leaves a gap that will potentially act as a support or resistance. If this is confirmed in the following days then the upward trend continues.
Downside-Gap Tasuki happens during a downtrend. Day1 is a bearish candlestick. Day2 is a smaller bearish candlestick that gaps down from the previous day. Day3 is a bullish candlestick that opens within the real body of the second day and closes above the real body of the second day and fills in some of the gaps.
The psychology of the Upside-Gap Tasuki pattern is that Day1 and Day2 candlesticks confirm the previous uptrend. Day3 close price bearish candlestick leaves a gap that will potentially act as a support or resistance. If this is confirmed in the following days then the upward trend continues.
As with any other patterns, Task patterns require confirmation candlesticks in the following days. If no confirmation then the pattern signal can be considered as voided.