Downside Tasuki Gap

The Psychology
In a downtrend a gap is partially filled. This is simply a profit taking scenario for the shorts and a sucker entry for dumb longs. We have a weak stock in a downtrend that bounces. As long as the white day is on lighter volume, the bears will most likely retake control soon after.

A long black day is followed by a second long black day that gaps in the direction of the trend. The third day is white and opens within the body of the second day and closes within the gap.

Pattern: continuation
Reliability: moderate