Bullish Tasuki Gap
A Bullish Tasuki Gap is a technical chart pattern that is used by traders to identify potential bullish trends in the stock market. It is a type of continuation pattern, which means that it is used to confirm the continuation of an existing trend. The pattern is formed when the price of a security gaps up and then closes below the open of the previous day. This gap is then followed by a second gap up, which closes above the open of the previous day. The pattern is considered to be a strong indication of a bullish trend.
History of the Term
The term “Bullish Tasuki Gap” was first coined by Japanese analyst Goichi Hosoda in the early 1970s. Hosoda was a pioneer in the field of technical analysis and is credited with developing the Ichimoku Kinko Hyo, a popular technical analysis tool. The term “Tasuki” is derived from the Japanese word for “flag”, which is used to describe the shape of the pattern. The pattern is also known as the “Ascending Three Method” or “Three White Soldiers”.
Table of Comparisons
| Pattern | Description |
|---|---|
| Bullish Tasuki Gap | Price gaps up and then closes below the open of the previous day, followed by a second gap up which closes above the open of the previous day. |
| Bearish Tasuki Gap | Price gaps down and then closes above the open of the previous day, followed by a second gap down which closes below the open of the previous day. |
Summary
A Bullish Tasuki Gap is a technical chart pattern that is used by traders to identify potential bullish trends in the stock market. It is a type of continuation pattern, which means that it is used to confirm the continuation of an existing trend. The pattern is formed when the price of a security gaps up and then closes below the open of the previous day. This gap is then followed by a second gap up, which closes above the open of the previous day. The pattern is considered to be a strong indication of a bullish trend. For more information about this term, you can visit Investopedia, The Balance, and Investing.com.
See Also
- Bearish Tasuki Gap
- Ascending Three Method
- Three White Soldiers
- Ichimoku Kinko Hyo
- Continuation Pattern
- Gap Up
- Gap Down
- Bullish Trend
- Bearish Trend
- Technical Analysis
