Bullish Separating Lines
Swing Trading, A Scientific Approach. Stock And Option Trading.
The Bullish separating lines is a candlestick continuation pattern. It signals that a strong up trending stock is likely to rally.
This pattern consists of two different candlesticks. The first candlestick is a large down day. The second day the stock gaps up and opens at the opening price of the first day. Then the stock rallies without having a lower shadow.
Why is the bullish Separating Lines a bullish pattern? The first day the stock pulls back a little. When it opens higher and continues to head up that signals the pullback is over. It also shows that the stock has not broken its uptrend which is always bullish.
Tip If the second day is not a large up day it may signal that the stock is showing some weakness.

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