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.