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The «Upward-Gap Tasuki» — is a continuation pattern when after a white candle that forms a «gap» up a black candle appears — a retracement to the «gap». The opening price of the black candle is within the real body of the white candle while the closing price is lower (Figure 1). It is recommended to buy at the closing price of the black candle. Stop Loss order is placed under the «gap».
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Figure 1. Upward- and Downward-Gap Tasuki
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The «Downward-Gap Tasuki» — a continuation pattern when after a black candle that forms a «gap» down a white candle appears — a retracement to the «gap». The opening price of the white candle is within the real body of the black candle while the closing price is higher (Figure 1). It is recommended to buy at the closing price of the white candle. Stop Loss order is placed under the «gap».
The real bodies of the both candles in the «tasuki gap» pattern must be approximately equal in size. These patterns are relatively rare on the FOREX market.
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