Reading the market regime before prices move

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After hours
Bearish signal ▼ · 55 pattern

Bearish Separating Lines

Bearish Separating Lines

Bearish Separating Lines are two candles inside a downtrend: a bullish candle (a bounce), then a bearish candle that opens at the same level as the bullish candle's open and resumes the drop. The matching opens cancel the bounce and confirm the downtrend is continuing.

55
PATTERN ID
Signal Bearish ▼
Reliability ★★★☆☆
Win Rate 62%
Expected move −3–8%
Timeframe Daily
Confirmation Self-confirming

The short answer

What is a Bearish Separating Lines candle?
Bearish Separating Lines (Bearish Separating Lines) are two candles inside a downtrend: a bullish candle (a bounce), then a bearish candle that opens at the same level as the bullish candle's open and resumes the drop. The matching opens cancel the bounce and confirm the downtrend is continuing.
How to spot a Bearish Separating Lines candle
Appears inside an existing downtrend. First candle: bullish (a temporary bounce). Second candle: bearish, opening at the same price as the first candle's open.
Is a Bearish Separating Lines candle a bullish or bearish signal?
A bearish continuation pattern made of two candles. Confirmation: self-confirming. Reference success rate: 62%. See it on live daily candles for any symbol in the members' technical terminal. Open the technical terminal →
Pattern illustration
Rising, then falling, opening at the same open so the decline resumes

How to identify the pattern

Step-by-step checks
  • Appears inside an existing downtrend
  • First candle: bullish (a temporary bounce)
  • Second candle: bearish, opening at the same price as the first candle's open
  • The matching open price is the core of the pattern

Trading psychology

The power struggle between buyers and sellers
Buyers try a bounce, but the next day the market opens at yesterday's starting point and immediately resumes falling, as if the bounce never happened. The matching open shows sellers quickly taking control again.

Outlook and confirmation

Entry conditions and expected price move
Self-confirming, no extra candle needed
Bearish continuation ~62% within an existing trend. Historical pullback range 3–8%. Trade with the trend, stop above the high of the second candle.
Ideal setting for the pattern
Inside a downtrend
Recommended timeframe: daily

Where to find it on the platform

  • Technical terminal for members
    Shows the daily-timeframe candles for any symbol on the platform's list. You identify the pattern by eye: the terminal does not name it.