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Bearish separating lines pattern is a bearish trend continuation candlestick pattern, which indicates the continuation of an existing downtrend even after a long bullish day. This is a two candlestick formation, comprising a bullish and a bearish candlestick. Bearish separating lines pattern resembles bearish kicking candlestick pattern, but there is no gap between the candlesticks and the candlesticks are not total marubozu.


The requirements of a bearish separating lines candlestick pattern include:

• The pattern should show a significant downtrend.
• On the first day there is a long bullish (white or colorless) candlestick.
• The second day opens a gap below, at or very close to the first day’s opening price, and there is a bearish (black or colored) candlestick with no upper shadow (opening marubozu).

Bearish separating lines formation occurs when bears regain their confidence after a bullish day. The facts that the prices opened at below a gap (at the opening price of the previous day), and that the bulls are unable to bring the prices up above the second day opening price indicate that the bearish trend will continue.

Bearish separating lines pattern is a less common and less reliable pattern. For considering the formation a valid one, the second day candlestick must be opening marubozu. The reliability of the pattern increases with increase in real-bodies of candlesticks. Confirmation of trend continuation is required, which can be a bearish candlestick, a gap below opening or a lower close on the third day.

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