The Ultimate Guide to Low-Price Gapping Play Candlestick Patterns

Last updated: January 4, 2024

Low-Price Gapping Play Pattern

The low-price gapping play candlestick pattern is composed of a sequence of candles with small real bodies appearing as price consolidation prior to a downward move in share price with a falling window:

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes low-price gapping play patterns with the following characteristics:

Typical characteristics

• A series of candles with small real bodies occurring prior to a falling window (gap down) in share price

Examples of use as a trading indicator

• The falling window that occurs in the pattern can be used to estimate potential resistance areas (which is voided after a close above the top of the window).

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!