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Bearish Downside Gap Three Methods


This pattern signals a trend...

How to identify...

Similar pattern(s)...

Continuation

  1. 1st two day are long black days with a gap between them.
  2. 3rd day is a white day that fills the gap of the 1st two days.
  • Bearish Downside Tasuki Gap

Psychology...

The gap down on the 2nd day gets filled by the 3rd day. More investigation of the previous weeks is recommended in order to see if this is the first gap. If so, then this pattern is probably displaying short covering to 'close the gap' created and the bearish trend should continue.