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.