Tasuki Gap
The Tasuki Gap is a technical analysis pattern used to identify potential breakouts in the price of a security. It is a type of continuation pattern that is formed when the price of a security moves in a sideways direction, creating a gap between two candlesticks. The pattern is named after the Japanese word for a sash or belt, which is used to hold a kimono together. The Tasuki Gap is used to identify potential breakouts in the price of a security, which can then be used to make trading decisions.
History of the Tasuki Gap
The Tasuki Gap was first identified by Japanese technical analyst Goichi Hosoda in the 1930s. Hosoda was one of the first to use technical analysis to identify patterns in the stock market. He developed the Ichimoku Kinko Hyo, a technical analysis system that is still used today. The Tasuki Gap is one of the patterns identified by Hosoda and is used to identify potential breakouts in the price of a security.
The Tasuki Gap is formed when the price of a security moves in a sideways direction, creating a gap between two candlesticks. The pattern is identified when the price of the security breaks out of the gap, either to the upside or the downside. This can be used to identify potential trading opportunities, as the breakout could signal a trend reversal or a continuation of the current trend.
Table of Comparisons
| Pattern | Upside Breakout | Downside Breakout |
|---|---|---|
| Tasuki Gap | Bullish | Bearish |
Summary
The Tasuki Gap is a technical analysis pattern used to identify potential breakouts in the price of a security. It is a type of continuation pattern that is formed when the price of a security moves in a sideways direction, creating a gap between two candlesticks. The pattern is identified when the price of the security breaks out of the gap, either to the upside or the downside. This can be used to identify potential trading opportunities, as the breakout could signal a trend reversal or a continuation of the current trend. For more information about the Tasuki Gap, you can visit Investopedia, Investing.com, and other financial websites.
See Also
- Ichimoku Kinko Hyo
- Doji
- Engulfing Pattern
- Harami Pattern
- Abandoned Baby Pattern
- Three White Soldiers Pattern
- Three Black Crows Pattern
- Bullish and Bearish Reversal Patterns
- Trend Lines
- Support and Resistance Levels
