Upside & Downside Gap three methods. This pattern is quite similar to the Tasuki Gap, but the key difference is that the 3rd candle completely fills the price Gap.

🔹 The Filling Rule In an Uptrend

  • Candles 1 and 2 rise to create a Gap.

  • Candle 3 is a strong bearish candle that drops to close that Gap entirely.

🔸 The Psychological Trap

  • Many traders panic, assuming that filling the Gap indicates a reversal.

  • Candle 3 is simply short term profit taking and a Retest of the previous breakout zone.

  • As long as the price does not break below the low of Candle 1, the uptrend remains intact.

🔹 Boarding Opportunity

  • Once the Gap is filled and the price stabilizes or shows a wick, it is the perfect Buy the Dip moment.

  • You are buying at a discounted price within a strong uptrend.

Do you sell when the Gap fills, or do you buy when support is verified?

This article is for reference only, this is not investment advice. Please read and consider carefully before making a decision.