Definition
Bearish Separating Lines consists of two candles. The first day’s white candle is followed by a Black Opening Marubozu with its opening price close to the previous day’s closing price.
- Trend: Continuation
- Expected trend: Bearish
- Previous trend: Bearish
- Reliability: Low
- Type: Bearish
- Number: 2
Recognition
- The market is in a downward trend.
- The first day is a long white candle.
- The share opens at the previous day’s closing price (or close to that). The price moves in the trend’s direction.
- The second day is a Bearish Marubozu Opening.
Interpretation
A white candle appears in the inclining trend with small trading volume. The share opens at the previous day’s closing price (or close to that), but the price draws a black candle. The inclining trend will probably continue.
Important factors
The black candle must be a Bearish Marubozu Opening. To make sure the trend is reversed, a confirmation on the third day is needed. The confirmation could come from a black candle with a downward gap or a lower closing price.
