Takuri Line – Powerful Bullish Reversal Signal

Definition of Takuri Line

The Takuri Line is a powerful bullish reversal candlestick pattern, typically appearing at the end of a downtrend. It features a small real body at the upper end, a very long lower shadow (at least 2-3 times the body), and very short or no upper shadow. This indicates strong buying pressure that pushed price up from the lows.

[diagram:long-legged-doji]

Note: Unlike a Hammer, the Takuri Line has almost no upper shadow, reflecting stronger control by buyers from the start.

How to Identify

• Appears within a clear downtrend.
• Long lower shadow, typically 2-3 times the body length.
• Small body, can be bullish (green) or bearish (red), but green gives stronger signal.
• Very short or absent upper shadow.

Example: On a H4 chart, after a sharp decline, a Takuri Line forms at a support area with a surge in volume.

Trading the Takuri Line (with SMC)

• Confirm price zone: Use Order Block (OB) or Fair Value Gap (FVG) below the Takuri as support.
• Wait for reaction: After Takuri closes, wait for a bullish confirmation candle (e.g., break above Takuri's high).
• Entry: Buy limit near discount from OB/FVG, or buy stop on breakout above Takuri's high.
• Stop loss: Below the lower shadow of Takuri or below the OB/FVG zone.
• Take profit: Minimum 1R, extend to next resistance.

Common Mistakes

• Trading without market confirmation (e.g., price hasn't broken above Takuri's high).
• Ignoring macro structure: Takuri is only valid in a downtrend, not in a sideways market.
• Failing to combine with SMC: without supply/demand zones, false signals increase.