Separating Lines is a trend continuation candlestick pattern made up of 2 bars.
The bearish Separating Lines:
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The 1st bar is long and bullish after the downtrend;
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The 2nd bar is long and bearish and its Open price is equal to that of the 1st bar;
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The 2nd bar does not have an upper shadow.
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The bullish Separating Lines:
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The 1st bar is long and bearish after the uptrend;
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The 2nd bar is long and bullish and its Open price is equal to that of the 1st bar;
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The 2nd bar does not have a lower shadow.
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We use our proprietary data-mining algorithm to capture specific price
movement and pattern performance.
Under certain circumstances, a Bullish pattern can also perform as a Bearish
pattern, and a reversal pattern can be changed into a continuation pattern.
If you want to find out the
performance of this pattern in real market, not in theory, our data mining results
are your must have reference.
The following pictures are taken
from our Candlestick Pattern Indicator (Thinorswim version).
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