The Takuri pattern is a Japanese candlestick formation used in forex trading to identify potential reversals in a downtrend. It’s characterized by a single candlestick with a small body and an exceptionally long lower shadow, indicating that sellers pushed the price significantly lower during the session but buyers managed to push it back up, closing near the opening price.

The term "Takuri" means "to probe" or "to search the bottom," reflecting the candle’s action of testing lower price levels. This pattern is often considered a bullish reversal signal, particularly when it appears after a sustained downtrend. The long lower shadow signifies that the market found strong support at lower levels, and the subsequent buying pressure suggests a potential shift in market sentiment from bearish to bullish.

However, traders should not rely on the Takuri pattern alone for making trading decisions. It’s more effective when confirmed by other technical indicators, such as support levels, RSI (Relative Strength Index), or volume analysis. The pattern's reliability also increases if it forms near a significant support zone or in conjunction with other bullish patterns, like a hammer or a bullish engulfing candle.

The Takuri Pattern is a single-candle reversal signal that appears after a strong decline in forex markets. It forms when the price drops sharply during the session but recovers enough to close near its opening level. This creates a long lower shadow and a small real body, showing that sellers pushed hard but buyers stepped in with force. Traders read this as early strength because the market rejected lower prices. Although it hints at a possible bullish reversal, it works best when supported by oversold readings, volume shifts or a nearby support zone. Many traders wait for confirmation from the next candle before entering, using the pattern as a sign that downside pressure may be losing momentum.