Tasuki Line
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A two-candlestick pattern where the second candle moves in the opposite direction and closes beyond the first candle's body. In an uptrend, a large bullish candle is followed by a large bearish candle closing below the first's open; in a downtrend, the opposite. This counter-trend move that exceeds the prior candle's body suggests a potential trend reversal.
After the tasuki line is confirmed, enter in the reversal direction when the next candle confirms movement. Short for uptrend tasuki lines, long for downtrend ones.
Project the first candle's body length in the reversal direction. Or target the nearest support/resistance line.
Place a stop-loss slightly beyond the second candle's high (for downward reversal) or low (for upward reversal).
If the second candle's volume exceeds the first, it indicates strong reversal force, enhancing reliability. Declining volume means weaker reversal momentum.