Upside Tasuki Gap Pattern on a Live Gold Chart

What it shows

Each one gets a blue label marked UTG under the low of the third candle.

How Pravex works it out

1. The first two candles must both be rising (close above open). The second candle’s low must be above the first candle’s high, a full gap.
2. The third candle must be falling and open inside the second candle’s body, edges included.
3. It must close below the second candle’s low and above the first candle’s high, so it ends inside the gap and leaves part of it open.
4. No average body is used.
5. For the upside tasuki gap, the trend test runs on the first of the three candles, which by default has to close above its 50-candle simple moving average to count as an uptrend; on the first 49 candles, where the average can’t be measured yet, nothing is marked.

Settings

Setting	Default	What changing it does
Trend check	SMA50	Decides what counts as an uptrend before the upside tasuki gap. By default one close is read against the 50-candle average; adding the 200-candle average asks for a longer trend before the upside tasuki gap, and switching the check off ignores the trend completely.
Label colour	Blue (#2196F3)	The fill of the UTG label under the low of each candle where the upside tasuki gap pattern is complete; its white text needs a colour it reads well on.

How traders read it

The gap is the buyers’ mark, and the falling third candle is the sellers testing it. They get into the gap but cannot close it, so the gap becomes support and the rise is read as continuing.

The bottom of the gap, the first candle’s high, is the level that has to hold. A later close below it fills the gap and ends the reading.

When it misleads

A full gap between two candles is rare on spot gold, so there will be few labels, and most will sit around a pause in trading. The candles have no size test, so a small third candle drifting down into the gap counts. For the upside tasuki gap, one close above the 50-candle average counts as an uptrend. Wait for the close before trusting a upside tasuki gap label on the latest candle, which is checked on each update and can lose its label.

Questions and answers

What is an upside tasuki gap?

Three candles in a rise: two rising candles with a gap up between them, then a falling candle that opens inside the second body and closes inside the gap.

Is the upside tasuki gap bullish?

Yes. The dip failed to fill the gap, which is read as the rise continuing.

When is an upside tasuki gap cancelled?

A close below the first candle’s high, which fills the gap.

Related: Downside Tasuki Gap - Bearish, Rising Window - Bullish, Rising Three Methods - Bullish, All Candlestick Patterns, every indicator.