The Ultimate Guide to Bearish Separating Lines Candlestick Patterns

Last updated: February 7, 2024

Bearish Separating Lines Pattern

The bearish separating lines candlestick pattern occurs when two subsequent candles (the first red, the second green) have the same opening price:

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes bearish separating lines patterns with the following characteristics:

Typical characteristics

• In a price decline, after the completion of a bullish candle, a bearish candle occurs at a similar opening price

Examples of use as a trading indicator

• If occurring in a price decline, this pattern indicates that the bearish trend will continue

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!