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Bullish Separating Line

Updated on March 19, 2023

A Bullish Separating Line is also known as a bullish continuation pattern in technical analysis. This pattern is formed when there is a gap in price between two candlesticks on a price chart. In this pattern, the first candlestick is mostly a bearish candle. This indicates a downward trend. On the other hand, the second candlestick is bullish which indicates a potential change in the trend.

What does the Bullish Seprating Line indicate?

The Bullish Separating Line is considered a continuation pattern as it indicates that the trend is most likely to continue in the direction of the gap which moves in the upward direction. The onset of this pattern signals that buyers have now taken control of the market and are pushing the prices in an upward or higher direction. This is usually seen as a positive sign for the market.