Chartered Market Technician Practice Exam 2025 – Complete Prep Guide

The choice of Tasuki Gap Bearish as the correct answer is based on its defined characteristics in technical analysis. A Tasuki Gap Bearish occurs when there is a gap up in the price followed by a strong bullish candle and then the subsequent emergence of a bearish candle that closes within the body of the bullish candle. This pattern indicates that after a strong bullish move, market sentiment may be shifting towards bearishness, signaling a continuation of the downtrend after an upward movement.

In the context of a trend, the Tasuki Gap Bearish implies that while a bullish trend has occurred, the bears are starting to take control which can lead to further declines. This pattern is particularly notable because it shows that buyers were unable to maintain the upward momentum, thus providing a strong signal for potential bearish continuation.

The other patterns listed have different implications and do not fit the description of indicating a bearish continuation after a bullish trend. Understanding these unique characteristics of different candlestick patterns is crucial for effectively reading charts and making informed trading decisions.