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Nikita (SEBI RA)

19th Sep · SEBI-Registered Analyst

Separating Lines – Continuation Signal

📊 The Separating Lines pattern indicates continuation of the current trend. ✅ Formation: In uptrend → Red candle followed by green candle opening at same level as red’s open. In downtrend → Green candle followed by red candle opening at same level as green’s open. ✅ Meaning: Shows strong market conviction, no reversal – trend resumes. 📌 Example: In an uptrend, stock prints red at ₹450 close, next day green opens again at ₹450 and rallies → Separating Lines bullish.

DIVISLAB
🧠 Rule: Stronger if supported with volume.

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