Chartered Market Technician Practice Exam 2026 – Complete Prep Guide

The Tasuki Gap Bearish candlestick pattern is indicative of a bearish continuation following a previous upward price movement. This pattern occurs after a strong price increase, where a gap forms between the bullish candle and the following bearish candle. The presence of this gap suggests that there is still selling pressure in the market, leading traders to anticipate that the upward trend is losing momentum and a potential reversal to the downside is forthcoming.

Understanding the structure of the Tasuki Gap Bearish helps to identify its predictive power: it consists of a bullish candle, followed by a gap down to a bearish candle that closes within the range of the prior bullish candle. This signals that the sellers are stepping in and may be strong enough to push prices lower, confirming the idea of a bearish continuation after an earlier rally.

The other patterns, while important in their own right, do not suggest a bearish continuation in this specific context. For instance, the Morning Star is a bullish reversal pattern, while the Hanging Man indicates a potential reversal but does not suggest a continuation; its presence after an upwards trend can denote a possible top. Meanwhile, the Tasuki Gap Bullish pattern actually indicates a continuation of an uptrend, not a bearish scenario. Thus, the Tasuki Gap Bearish is rightly