Separating Lines – Continuation Pattern
📊 The Separating Lines is a candlestick continuation pattern that confirms trend strength.
✅ Types:
Bullish Separating Lines: First a red candle, then a green candle that opens at the same level as the red’s open and closes higher → uptrend continuation.
Bearish Separating Lines: First a green candle, then a red candle that opens at the same level as the green’s open and closes lower → downtrend continuation.
📌 Example: Stock in uptrend, prints red closing ₹590, next day opens at ₹600 (same as previous open) and closes ₹620 → Bullish Separating Lines → trend resumes.
🧠 Tip: Rare but reliable if accompanied by strong volume.
DRREDDY
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