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Downside Tasuki Gap is a bearish trend-continuation candlestick pattern which indicates continuation of an existing downtrend, even after a bullish day. Bearish Tasuki gap is a rare pattern which usually favors short-sellers to profit from market. It is a three candlestick pattern which includes two bearish candlesticks and one bullish candlestick.

The requirements of bearish downside Tasuki gap include

• The pattern should be formed in a significant downtrend.
• The first day should be a bearish day.
• The second day also should be a bearish day, where the price should open after a noticeable gap.
• The third day should also be a bullish day, of which the real-body should open within the second day candlestick body and should close within the gap between first and second candlestick.

Bearish downside Tasuki gap candlesticks form when there is strong bearish trend. The bullish candlestick on the third day is a temporary halt of the trend, as a result of short-covering or buying at low prices. The partial filling of the gap indicate that the buyers not yet got control of market.

Bearish downside Tasuki gap is a moderately reliable pattern. The reliability increases with increase in gap, decrease and similarity in real-body size of second and third candlesticks, and with the lesser the gap is filled. Confirmation of trend continuation is strongly recommended, which can be a bearish candlestick or a lower gap on following day.

Remember: if the third day candlestick’s real body completely fills the gap, or exceeds the gap, then it is considered a weak indication of trend continuation, and there is a strong possibility of trend reversal or sidewise movements.

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