Upside Tasuki Gap - Bullish
Upside Tasuki Gap is a three-candle pattern found in an uptrend that usually hints at the continuation of the uptrend. The first candle is long and green, followed by a smaller green candle with its opening price that gaps above the body of the previous candle. The third candle is red and it closes inside the gap created by the first two candles, unable to close it fully. The bear’s inability to close the gap hints that the uptrend might continue.
The bearish version of the Upside Tasuki Gap pattern is the Downside Tasuki Gap candlestick pattern.
Traditionally, this candlestick pattern is recognized in conjunction with a specific trend direction, i.e. it might be important for the pattern if the price has been generally going up or down. The ‘Detect Trend Based On’ option allows you to specify which of the following methods to use to detect the trend:
- SMA50 - the indicator compares the current price of the symbol to its Simple Moving Average (SMA) with the length of 50. If the current price is below the SMA, this price movement is considered a downtrend. If the price is above the SMA, it is an uptrend.
- SMA50, SMA200 - the indicator separately compares the current price to the SMA50 and the SMA50 to SMA200. If the current price is above the SMA50 and SMA50 is above SMA200, this is considered an uptrend. If the price is below SMA50 and SMA50 is below SMA200, this is a downtrend.
- No detection - the indicator does not take price trend into account.
By comparing two different SMAs, the 'SMA50, SMA200' option only detects stronger trends. When the trend is weak and the condition above is not met, no patterns will be detected. In contrast, the 'SMA50' option will also detect weaker trends.