Tasuki Line (Bullish & Bearish)

No lower open, then a takeover

By
42Fibonacci
Updated
Read time
6–8 min

A Tasuki Line is a two-candle reversal pattern: after a decline, a long red candle is followed by a long green candle that opens at or above the red close and closes above the red open. No lower open means the selling did not carry over. The Bearish Tasuki Line is its mirror.

At a glance
Type
Two-candle reversal
Variants
Bullish (after a decline) and Bearish (after a rally)
Story
The selling did not carry into the next open
Key rule
A long green that opens at or above the red close and closes above the red open
Confirmation
The green close, for many traders; others wait for resistance to break
Stop
Below the pattern's low, often the red candle's (above the high for Bearish)

What Makes a Tasuki Line

A Bullish Tasuki Line is two long candles after a decline: a red candle, then a green candle that opens at or above the red close and closes above the red open. The green candle wins back the whole red body without ever opening lower.

“Long” means the bodies (the thick part between open and close) are clearly bigger than the candles around them. If the parts of a candle are new to you, start with the Candlestick Basics guide.

The mirror, a Bearish Tasuki Line, is a long green candle after a rally, then a long red candle that opens at or below the green close and closes below the green open. This guide teaches the bullish form first and the bearish one as its mirror.

First candle
A long red candle that extends the decline. Sellers controlled the session.
The second candle's open
At or above the red candle's close. The next session does not start lower, so the selling did not carry over.
The second candle's close
A long green body that closes above the red candle's open, the price where the red session began.
Note
Traders disagree on the exact rules. The pattern is obscure, and two versions are in use. The looser one: the green opens at or above the red close and closes above the red open. The stricter one: the green opens inside the red body and closes above the red candle's high, the top of its upper shadow (the thin line above the body that marks the session's highest trade). A pair that meets the stricter version meets both.

How a Bullish Tasuki Line Forms

Two sessions: one that belongs to the sellers, and one where they never got going.

Session one: a long red candle

"Another heavy down day. The decline is speeding up."

A long red candle extends the decline and closes near its low. Nothing in it looks like a turn.

The open: no follow-through

"It's not opening any lower."

After a day like that, sellers would expect a weaker open. Instead the session opens at or above the red close. Whatever pushed price down yesterday did not carry over to this morning.

Session two: buyers take it back

"It's back above where yesterday started."

Buyers lift price all session and close above the red candle's open. Everyone who sold during the red day is now behind.

Is the Tasuki Line Bullish or Bearish?

The name says which way it points. A Bullish Tasuki Line points to a turn up after a decline; a Bearish Tasuki Line to a turn down after a rally.

The second candle already does a lot. Its close is above the red candle's open, so everything the red candle lost has been won back inside the pattern. Many traders treat that close as the confirmation. Others want one more piece of evidence: price clearing the nearest resistance, a level where recent rallies have stalled. Traders disagree, and both are reasonable.

Either way, the idea fails on a close below the pattern's low. Where it forms matters too. In the middle of a steep decline, far from any level where buyers have stepped in before, some traders read the same two candles as a sharp bounce that sellers will use to sell again.

Read Where the Second Candle Opens

Where the green candle opens decides two things: which pattern you are looking at, and where the stop goes. The chart below keeps the red candle and the green close fixed and moves only the green open.

The open names the pattern and moves the stopIllustrative
Bullish EngulfingPattern low: green candleOvernight −$0.30Session +$2.90Bullish Tasuki LinePattern low: red candleOvernight +$0.40Session +$2.20Gap upPattern low: red candleOvernight +$2.30Session +$0.30Green closeRed openRed close
Each panel has the same red candle and the same green close; only the green open moves, and it decides two things. The name: below the red close is an engulfing, inside the red body a Tasuki Line, above the red candle a gap up. The stop: the engulfing's lowest point is its own green candle, but the Tasuki Line and the gap up never trade below the red candle's low, so the pattern's low, marked under each panel, belongs to the red candle. The orange bar is the change from the red close to the green open, made overnight; the green body is what buyers did during the session.

Opens below the red close: an engulfing. Sellers were still pressing at the start of the day, and buyers had to absorb that before winning the session. The lowest point is usually the green candle's own.

Opens inside the red body: a Tasuki Line. The selling did not carry into the next morning; sellers got no lower open. Buyers still did most of the work during the session. The green low usually stays above the red low.

Opens above the red candle's high: a gap up. The looser definition's open rule still allows it, if the green body is long; the stricter one does not, because it does not open inside the red body. Either way most of the turn happened overnight, usually on news. With both candles shaved, with no shadows, it is a Kicking pattern.

Tip
Check the low as well as the open. The open is only the first trade. If the green candle opens at the red close but its lower shadow (the thin line below the body) reaches well below it, sellers did push lower during the session before buyers took over. Read that one closer to an engulfing.

The open moves the stop. Because the green candle opens at or above the red close, its low is often above the red candle's low. Then the lowest point of the pattern belongs to the red candle, and that is where the idea fails. A stop tucked under the green candle's low sits inside the pattern, where an ordinary dip can reach it without breaking anything.

Tasuki Line vs. Bullish Engulfing, Kicking and the Tasuki Gap

Bullish Tasuki Line
  • The green opens at or above the red close
  • It closes above the red open
Bullish Engulfing
  • The green opens below the red close
  • Its body wraps the whole red body
Bullish Kicking
  • The green opens above the red candle's open: a gap
  • Both candles have no shadows

Tasuki Line versus engulfing. Both close above the red open; the open is the difference. A Bullish Engulfing opens below the red close, so its body covers the red body from end to end. When the green opens exactly at the red close, the two bodies share one edge, and traders disagree: some count it as an engulfing as well, others keep the names apart. On markets that trade around the clock, such as crypto, each candle usually opens at the last close, so the distinction there is thin.

Tasuki Line versus Piercing. A Piercing Pattern opens below the red close and stops past the middle of the red body, short of its open. A Tasuki Line starts higher and finishes higher.

Tasuki Line versus Kicking. A Bullish Kicking opens above the red candle's open, so the whole turn happened overnight, and both candles are shaved, with no shadows. Under the looser Tasuki definition a gap-up green can also qualify; under the stricter one it must open inside the red body.

Tasuki Line versus Tasuki Gap. They share a name and nothing else. The Upside and Downside Tasuki Gaps are three-candle patterns built around a gap, usually read as a trend continuing. The Tasuki Line has no gap requirement and is read as a reversal.

Bullish vs Bearish Tasuki Line

Bullish Tasuki Line
  • After a decline: a long red, then a long green that opens at or above its close and closes above its open
  • Fails on a close below the pattern's low
Bearish Tasuki Line
  • After a rally: a long green, then a long red that opens at or below its close and closes below its open
  • Fails on a close above the pattern's high

In the bearish form, a strong up day is followed by a session that opens no higher than its close. Buyers get no higher open, and sellers then push price below where the green day began. Everyone who bought during the green day is behind. The red candle's high is often below the green candle's high, so the stop usually goes above the green candle.

How to Trade a Tasuki Line

  1. Check the decline and the location

    Look for lower highs and lower lows into the pattern, and ideally a level where buyers have stepped in before.

  2. Check both candles are long

    Both bodies should be clearly bigger than the recent candles. Two small candles that happen to meet the rules show little.

  3. Read the open, then the low

    The green should open at or above the red close, and its lower shadow should not reach far below that close. Then check the close: above the red open, or above the red high for the stricter reading.

  4. Decide when to enter

    Enter on the green close, or wait for price to clear the nearest resistance. Waiting buys evidence and costs entry price.

  5. Put the stop below the pattern's low

    Usually the red candle's low. Leave a little room below it, then size the position so a stop-out costs what you planned.

Worked example

A stock that usually moves about $1.20 a day has fallen for four weeks. Yesterday's red candle opened at $42.10, closed at $40.30 and traded between $40.05 and $42.30. Today opened at $40.55, dipped to $40.45, and closed at $42.60. You plan to risk $300, entering at $42.60.

Is it a Tasuki Line, and where does the stop go?

The approach

Yes, by both versions: it opened inside the red body ($40.55, between $40.30 and $42.10) and closed above the red open and the red high ($42.60 against $42.30). Both bodies are long for this stock, $1.80 and $2.05. The open was 25 cents above the red close and the low stayed above it, so today never traded below yesterday's close; $2.05 of the $2.30 recovery came during the session. The pattern's low is the red candle's $40.05, not today's $40.45. A stop at $39.95 risks $2.65 a share, or 113 shares for $300. A stop under today's low, at $40.35, risks $2.25 a share and buys 133 shares, but it sits 30 cents above the pattern's low, where a dip can stop you out while the pattern is still intact.

Reading It in Context

Volume. Heavier volume on the green candle means more shares changed hands in the session that won the red day back, so the turn had real participation. Read the Candlesticks + Volume guide →

Size. Average True Range (ATR), a measure of how far a stock usually moves in a day, tells you whether both candles are really long for this stock, and how wide the stop is. Read the Candlesticks + ATR guide →

Moving averages. A Tasuki Line that turns up from a rising 50-day moving average reads as the end of a pullback in an uptrend. Under a falling one, the larger trend still points down, so a confirming close would be a turn against the decline, with that falling average still overhead. Read the Candlesticks + Moving Averages guide →

Common Tasuki Line Mistakes

MistakeInstead
Skipping the open

Big red, then a bigger green. That is a Tasuki Line.

Check where the green opened. Below the red close it is an engulfing, or a Piercing Pattern if it closes past the middle of the red body but short of its open.

Putting the stop under the green candle's low

Stop just below the second candle, to keep it tight.

The green often opens above the red candle's low, so its low sits inside the pattern. The idea fails below the pattern's low, usually the red candle's.

Mixing it up with the Tasuki Gap

Tasuki means a gap, so I need one here.

The Tasuki Gap is a separate three-candle continuation pattern. The Tasuki Line is two candles and needs no gap.

Trusting it anywhere in a decline

Strong green day after a red one. The bottom is in.

In the middle of a steep fall, the same pair has the whole decline against it, and the confirming close has not come. Near a level where buyers have stepped in before, it has that support under it.

Key takeaways
  • A Bullish Tasuki Line is a long red candle, then a long green that opens at or above the red close and closes above the red open; the Bearish form is the mirror
  • Traders disagree on the details: a stricter version wants the open inside the red body and the close above the red high
  • The open is the tell: no lower open means the selling did not carry over, and it is what separates the pattern from an engulfing
  • Because the green opens higher, the pattern's low is often the red candle's. The stop goes there, not under the green candle
  • Many traders take the green close as confirmation; others wait for resistance to break. A close below the pattern's low ends the idea

Frequently Asked Questions

What is a Tasuki Line candlestick pattern?

A two-candle reversal pattern. After a decline, a long red candle is followed by a long green candle that opens at or above the red close and closes above the red open. The mirror after a rally is the Bearish Tasuki Line.

Is the Tasuki Line bullish or bearish?

Both forms exist. A Bullish Tasuki Line points to a turn up after a decline; a Bearish Tasuki Line points to a turn down after a rally. Many traders take the green close itself as confirmation, because it is already above the red open; others wait for resistance to break. Either way, the idea fails on a close beyond the pattern's far end: below its low for the bullish form, above its high for the bearish one.

What is a Bearish Tasuki Line?

The mirror of the bullish form: after a rally, a long green candle is followed by a long red candle that opens at or below the green close and closes below the green open. Buyers get no higher open, and sellers then push price below where the green day began.

What is the difference between a Tasuki Line and a Bullish Engulfing?

The open. A Bullish Engulfing opens below the red close, so sellers were still pressing at the start of the day. A Tasuki Line opens at or above the red close, so the selling did not carry over. Both close above the red open. When the green opens exactly at the red close, traders disagree on whether to call it an engulfing as well.

Is the Tasuki Line the same as the Tasuki Gap?

No. They share only the name. The Upside and Downside Tasuki Gaps are three-candle patterns built around a gap and are usually read as a trend continuing. The Tasuki Line is two candles, needs no gap, and is read as a reversal.

Does a Tasuki Line need confirmation?

Traders disagree. The green close is already above the red candle's open, so many traders treat it as the confirmation. Others wait for price to clear the nearest resistance, a level where recent rallies stalled. Waiting buys evidence and costs entry price.

Where should the stop go on a Tasuki Line?

Below the pattern's low, with a little room. Because the green candle opens at or above the red close, its low is often above the red candle's low, so the pattern's low is usually the red candle's. A stop under the green candle's low sits inside the pattern, where an ordinary dip can reach it.

Why does it matter where the second candle opens?

The open shows what changed overnight, before anyone traded; the body shows what buyers did during the session. A lower open means sellers were still pressing. An open at or above the prior close means the selling did not carry over. Check the low too: a long lower shadow means sellers pushed lower during the session after all.

How is a Tasuki Line different from a Kicking pattern?

A Bullish Kicking opens above the red candle's open, leaving a gap, and both of its candles have no shadows; the whole turn happened overnight. A Tasuki Line usually opens lower than that, inside the red body, and buyers do most of the work during the session.

What does tasuki mean?

Tasuki is Japanese for a sash, a cord tied across the body to hold kimono sleeves back. The Tasuki Line and the Tasuki Gap share the word but are unrelated patterns.

The Bottom Line

A Tasuki Line is a turn you can read from the open. After a heavy red day, the next session does not start lower, and buyers then carry it past where the red day began.

Look at the open before you look at the size of the green candle. It tells you whether the selling carried into the morning, which pattern you are looking at, and where the stop belongs. Then check that it formed somewhere buyers have a reason to defend.

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