Online Trading Blog

Bullish separating lines is a bullish trend continuation pattern, indicating the continuation of an existing bullish trend; even after a long bearish day. This is a two candlestick pattern, formed of a bearish candlestick and a bullish candlestick. Bullish separating lines pattern resembles Bullish Kicking Candlestick Pattern, but it does not has a gap between the real-bodies of candlesticks and is also less reliable.


The requirements of bullish separating lines candlestick pattern include,

• The market should be characterized by a significant uptrend.
• There should be a long bearish (black or colored) candlestick on first day.
• There should be a long bullish (white or colorless) candlestick which opens at opening price of first day (or close to it) and with no lower shadow (opening marubozu).

Bullish separating lines formation occurs when bulls regain their confidence after a bearish day. The facts that the prices opened above a gap (on opening price) of previous day and bears are unable to bring prices below the opening price indicate that the uptrend will continue.

Bullish separating lines is a less reliable candlestick pattern. The pattern is considered valid only when the second-day candlestick is an opening marubozu. The reliability of pattern increases with increase in real-bodies of fist and second day candlesticks. Confirmation of trend continuation is highly advised, which can be a gap above opening, a bullish candlestick or higher close on third day.

NobleTrading.com Offers Online Stock Trading, Online Options Trading
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage