
Separating Lines |
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Pattern: continuation
Reliability: low
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Identification
A white day is followed by a black day that has the same opening price.
The Psychology
In a downtrend, the price gaps down and bounces intraday with a white candle. This proves to be simple profit taking by shorts and bottom fishing by dumb longs when the downtrend continues with the next day's gap down and low close.
The bearish Separating Lines is similar to the bearish Kicking. |