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Bullish Separating lines is a two-candle pattern that appears in the uptrend. The first candle is a bearish candlestick pattern and the second candle is a bullish candlestick formation. The open price of both the candlestick patterns are same.
Theoretically, the opening price of both the candlestick formations should be the same in this pattern. Practically, we must allow the marginal difference between both and focus on the essence of the pattern.
Higher volume in the second candle of the pattern indicates more bullishness. The prices are expected to continue to remain bullish after forming the bullish separating lines pattern.
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This pattern can be plotted on the chart by adding it from the study menu in TradePoint & RZone. The pattern is also available in the system builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.