For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Pattern: “Separating Lines Pattern”.
Separating Lines Pattern
– Normally it should be a signal of continuation of the current Trend.
– You can find it in the variants: Bullish and Bearish, depending on the Trend in which is located.
Bullish Separating Lines Pattern
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– The First Candle is long and black.
– The Second Candle is long and white; it has the Open at the same level (More or less) of the Open of the First Candle.
Bearish Separating Lines Pattern
– It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern.
– The First Candle is long and white.
– The Second Candle is long and black; it has the Open at the same level (More or less) of the Open of the First Candle.