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Sanku (Three Gaps) Pattern

What is 'Sanku (Three Gaps) Pattern'

The Japanese word for a candlestick pattern that consists of three individual gaps located within a well-defined trend. After the appearance of the third gap, the pattern is used to suggest an impending reversal in the direction of the current trend.

Explaining 'Sanku (Three Gaps) Pattern'

This pattern is used by traders to predict situations of exhaustion and change in a trend. Ultimately, the current trend is said to be reversed when the price of the asset fills the third gap. Technical traders should not rely solely on the three gaps pattern to predict a reversal; rather, they should combine this technique with other technical indicators.


Further Reading


The Unfinished Agenda for Food Fortification in Low-and Middle-Income Countries: Quantifying Progress, Gaps and Potential Opportunities
www.mdpi.com [PDF]
… Part 3 looks at stock indexes and some of the individual equity markets that make up the Standard and Poor's 500 … The four pattern types are Sanku, or three gaps; Sanpei, or three parallel lines; Sansen, or three rivers; and Sanzan, or three mountains …

Suitable Low Income Flood Resilient HousingSuitable Low Income Flood Resilient Housing
ph01.tci-thaijo.org [PDF]
… Part 3 looks at stock indexes and some of the individual equity markets that make up the Standard and Poor's 500 … The four pattern types are Sanku, or three gaps; Sanpei, or three parallel lines; Sansen, or three rivers; and Sanzan, or three mountains …

The influence of water in shaping culture and modernization of the Kathmandu ValleyThe influence of water in shaping culture and modernization of the Kathmandu Valley
books.google.com [PDF]
… Part 3 looks at stock indexes and some of the individual equity markets that make up the Standard and Poor's 500 … The four pattern types are Sanku, or three gaps; Sanpei, or three parallel lines; Sansen, or three rivers; and Sanzan, or three mountains …

Determinants of Fertility in BiharDeterminants of Fertility in Bihar
papers.ssrn.com [PDF]
… Part 3 looks at stock indexes and some of the individual equity markets that make up the Standard and Poor's 500 … The four pattern types are Sanku, or three gaps; Sanpei, or three parallel lines; Sansen, or three rivers; and Sanzan, or three mountains …

Millennials, sharing economy and tourism: the case of SeoulMillennials, sharing economy and tourism: the case of Seoul
www.emerald.com [PDF]
… Part 3 looks at stock indexes and some of the individual equity markets that make up the Standard and Poor's 500 … The four pattern types are Sanku, or three gaps; Sanpei, or three parallel lines; Sansen, or three rivers; and Sanzan, or three mountains …

Community-based micro-hydro development in Northern India–benefits beyond lighting?Community-based micro-hydro development in Northern India–benefits beyond lighting?
mspace.lib.umanitoba.ca [PDF]
… Part 3 looks at stock indexes and some of the individual equity markets that make up the Standard and Poor's 500 … The four pattern types are Sanku, or three gaps; Sanpei, or three parallel lines; Sansen, or three rivers; and Sanzan, or three mountains …



Q&A About Sanku (Three Gaps) Pattern


Is there any other technical indicator that can be combined with this technique to predict exhaustion and change in a trend?

Yes, technical traders should combine this technique with other technical indicators to predict exhaustion and change in trends.

What does "Technical traders" mean in context of question 7 above?

Technical traders refers to those who use charts, graphs, or mathematical formulas for analysis purposes rather than fundamental analysts who focus on company earnings reports, management changes, etc., when making investment decisions."

When do you use this technique to predict exhaustion and change in a trend?

This technique is used to predict exhaustion and change in a trend when the price fills the third gap.

What is the name of this pattern?

Sanku (Three Gaps) Pattern.

What does the Sanku (Three Gaps) Pattern consist of?

The Sanku (Three Gaps) Pattern consists of three individual gaps located within a well-defined trend.

Where are these gaps found in a trend?

The gaps are found within a well-defined trend.

Why shouldn't traders rely solely on this pattern to predict reversals?

Traders shouldn't rely solely on this pattern because they need additional information from other techniques as well as market conditions to make accurate predictions about reversals.

How many times should you see this pattern before it is considered an indicator for reversal?

You should see the pattern at least twice before it is considered an indicator for reversal.

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