Granthara04.04.06Tasuki gap and separating lines

Every price in Part 04 comes from an unnamed vegetable market and is a teaching example. Nothing here is a quote, a recommendation, or a record of any listed company.

04.04.06 · Tasuki gap and separating lines

PreviouslyMat hold is a pause that happens entirely above the move it interrupts.

A gap that held, and a name that isn't there.

Two continuation patterns, and one of them will not appear in Granthara's own rules engine no matter how exactly you draw it. That is not a fault in the drawing. It is the most useful thing on this page.

Every tool carries a list of patterns it knows. A tool that says nothing is not a tool that saw nothing.

Updated

30p
of untraded price, tested on the third session and still open at the bell
Part 04 · Continuation and Multi-Candle Formations
  1. 04.04.01 Three white soldiers, three black crows
  2. 04.04.02 Rising and falling three methods
  3. 04.04.03 Inside bars and outside bars
  4. 04.04.04 Marubozu and trend acceleration
  5. 04.04.05 Mat hold
  6. 04.04.06 Tasuki gap and separating lines
  7. 04.04.07 Three-line strike
  8. 04.04.08 Hikkake and modified Hikkake
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Learn

Separating lines: the dip that gets erased

Start with the one the engine does know, because it is the simpler idea.

Prices have been rising. Monday falls — opens ₹31.00, closes ₹30.50. Then Tuesday opens at ₹31.00 again, the same price Monday opened at, and runs to ₹31.90.

That is bullish separating lines. The name points at the opens: two sessions starting from the same price and going opposite ways. Monday's dip is not reversed so much as skipped — Tuesday begins as though it never happened.

The bearish mirror is the same in a falling market: a rising session, then a long falling one that opens at the same price the rise opened at, erasing the bounce.

See it

Two sessions from the same starting price

Read the two opening prices first. They are the pattern; the closes are the consequence.

Granthara's rules engine returns bullish separating lines. It allows the two opens to differ by up to 5% of the larger range before it stops calling them the same price — a convention, and worth knowing it is one.

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Why the open carries this one

Almost every pattern so far has been read from closes and bodies. This one is read from opens, and that is unusual enough to be worth a sentence.

An opening price in a continuous market is where the overnight repricing settled — where the pre-open auction of 01.04.02 came to rest. Two consecutive sessions opening at the same number means the overnight process arrived at the same place twice, despite what happened in between.

Which is why the pattern is filed as continuation rather than reversal. Monday's fall was a session; it was not a repricing. Tuesday's auction did not inherit it.

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Tasuki gap: a gap that gets tested and holds

Now the second pattern. Monday rises, ₹30.00 to ₹30.50. Tuesday opens at ₹30.80 — clear above Monday's high of ₹30.60 — and closes at ₹31.10. There is a stretch of price between ₹30.60 and ₹30.75 where nothing traded at all.

Wednesday falls. It opens inside Tuesday's body at ₹31.00 and slides to ₹30.65. And there it stops, one paisa into the gap, and closes.

That is an upside Tasuki gap: a gapped continuation, then a session that falls back and tests the gap without closing it. The whole content of the pattern is the word without. Had Wednesday closed at ₹30.40, below Monday's close, the gap would be filled and the reading would be completely different — the overnight repricing undone within two sessions.

See it

The gap, and the session that tested it

The number to watch is Wednesday's close against Monday's close of ₹30.50, and against Tuesday's open of ₹30.80.

Granthara's rules engine returns no pattern for these three boards — and returns no pattern for the same three with Wednesday closing at ₹30.40 and the gap filled. It cannot tell them apart, because it has no Tasuki rule.

A tool that has never been taught a pattern reports its absence exactly the way it reports a pattern that is not there.

Learn

The name your screener does not have

This is the lesson worth carrying out of chapter 04.04, and it is nothing to do with Tasuki.

Granthara's rules engine knows roughly sixty shapes. TA-Lib knows about sixty, not the same sixty. A charting platform's built-in scanner knows another list, usually shorter and usually undocumented. None of them knows every name in the literature, and none of them says so while it is running.

So there are two different reasons a screener stays quiet: the pattern is not on the chart, or the pattern is not in the list. From the outside these look identical, and the second is far commoner than most people assume.

The defence is cheap. Learn the geometry, not the button. You can check this one by eye in four seconds — did the third session close back through the gap, yes or no — and that check is reliable whatever any tool does or does not report.

Learn

What these boards permit

Separating lines permit you to say two consecutive sessions opened at the same price and went opposite ways. The Tasuki boards permit you to say a gap was tested and left open at the close.

Neither permits a claim about the session after. The literature files both as continuation patterns, and the word describes the boards already drawn.

And the Tasuki reading has one extra condition worth stating: it depends entirely on a gap, which on Indian equities is an overnight event. Intraday charts of a liquid stock produce very few real gaps, so this is a daily-chart pattern in practice whatever the textbook says.

The four-second checkFor any gap pattern, the only question is whether a later session closed back through the untraded stretch. Answer it by eye, before you ask what the shape is called — and certainly before you ask a screener whether it agrees.
Remember

Separating lines is two consecutive sessions opening at the same price and going opposite ways — read from the opens, not the closes, because an open is where the overnight auction settled. A Tasuki gap is a gapped move tested by a later session that fails to close the gap. Granthara's engine names the first and has no rule for the second, which is the real lesson: a silent tool has not told you the pattern is absent, only that it was never taught it.

Everything this chapter has told you, in order

  1. 04.04.01Three candles in the same direction blend into one: a single move seen closer up.
  2. 04.04.02Some patterns are artefacts of the timeframe you chose.
  3. 04.04.03Four names, one relationship, two measuring sticks.
  4. 04.04.04Not a new pattern — the measurement from 04.01.04 at its limit.
  5. 04.04.05Mat hold
  6. 04.04.06Tasuki gap and separating lines
Next
04.04.07 — Three-line strike

Next: four sessions, three of them pointing one way, and the fourth undoing all of them at once.