Downside Tasuki Gap
BearishContinuationIntermediateTwo red candles gap down, then a green one pokes into the gap but can't close it.
Verdict: SkipBitcoin 4H: 0 trades, won —, avg trade — vs random day — (too few trades to judge). Backtest
A downtrend, and a solid red candle.
step 1/7
Trade rules
| Direction | Short (sell) |
|---|---|
| Entry | In a downtrend: a red candle, a red candle whose body opens below the first one's close, then a green candle that opens inside the second body and closes inside the gap. A candle CLOSES below the pattern's low within 3 candles. |
| Cancelled if | Price trades above the first candle's close (the gap is filled) before that close. |
| Target | 2x the pattern, projected from the breakout |
3 common mistakes
- Reading the green candle as a reversal and buying it.
- Calling it a tasuki when the green candle closes the gap completely.
- Shorting before price breaks the pattern's low.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 0 | — | — | — |
| US large caps (50) · 1D · 2016-2026 | 28 | 21% | −2.97% | −0.71% |
Verdict: SkipLost money on average on US large caps. Bitcoin had too few signals to judge.
pattern −83%random −20%