Takuri Line

The Takuri Line pattern is very similar to the Hammer pattern. The only difference is that the length of the lower shadow of the Hammer pattern cannot exceed more than twice the length of its body, while the lower shadow of the Takuri Line cannot be shorter than at least three times its body.

The Takuri Line is most reliable when it forms in a clear downtrend or within a support zone. An occurrence of the Takuri Line pattern after short-term declines usually does not matter. Most important is its market context.

The Takuri Line pattern appearing after the price gap should be seen as a stronger signal, but as with any single-line pattern, it is good to wait for the signal to be confirmed in subsequent candles. However, aggressive traders often take a position immediately after the opening of the next candle with the gap, as it offers an opportunity for a dynamic price movement to the upside.

Takuri in Japanese denotes bottom fishing, which is a fishing technique, used to catch fish that are close to the seabed.