As of 04/19/2024
Indus: 37,986 +211.02 +0.6%
Trans: 15,084 +136.79 +0.9%
Utils: 876 +15.31 +1.8%
Nasdaq: 15,282 -319.49 -2.0%
S&P 500: 4,967 -43.89 -0.9%
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YTD
+0.8%
-5.1%
-0.7%
+1.8%
+4.1%
|
 39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 |
As of 04/19/2024
Indus: 37,986 +211.02 +0.6%
Trans: 15,084 +136.79 +0.9%
Utils: 876 +15.31 +1.8%
Nasdaq: 15,282 -319.49 -2.0%
S&P 500: 4,967 -43.89 -0.9%
|
YTD
+0.8%
-5.1%
-0.7%
+1.8%
+4.1%
| |
|
39,800 or 37,150 by 05/01/202416,200 or 15,000 by 05/01/2024885 or 850 by 05/01/202416,700 or 15,800 by 05/01/20245,250 or 5,025 by 05/01/2024 | ||
My book,
Encyclopedia of Candlestick Charts
If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.
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The bullish separating lines candlestick pattern acts as a bullish continuation of the upward price trend already underway. The trend after the breakout, based on the overall performance rank, is quite strong. In fact, a look at the numbers shows that the bullish separating lines do best after a downward breakout in a bear market -- or even a bull market for that matter. Upward breakouts are the weaklings and downward breakouts are the muscles group.
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Theoretical performance: Bullish continuation
Tested performance: Bullish continuation 72% of the time
Frequency rank: 76
Overall performance rank: 36
Best percentage meeting price target: 63% (bull market, up breakout)
Best average move in 10 days: -8.05% (bear market, down breakout)
Best 10-day performance rank: 4 (bear market, down breakout)
All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. |
 Bullish Separating Lines
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As the Important Results numbers show, and I alluded to in the introduction, the bullish separating lines candle pattern acts in theory as it does in reality, that of a bullish continuation 72% of the time. That ranks 6th of out 103 candles, which is very strong. The frequency rank is 76, so this candle pattern will not be easy to spot because it is rare. Out of over 4.7 million candle lines, I found just 2,842 of them. That may sound like a lot, and it is, but I would rather have 20,000 to study like many of the other patterns I looked at.
The overall performance rank is 36, but within that number the story gets interesting. The best average move 10 days after the breakout is a drop of 8.05% in a bear market. That ranks 4th where 1 is best out of 103 candles. The height of the candle pattern meets its target 63% of the time. In other words, compute the height from top to bottom of the two-day candle and add it to the top of the candle and that will give you a target price. The stock reaches the target almost two-thirds of the time in a bull market.
| Characteristic | Discussion |
| Number of candle lines | Two. |
| Price trend leading to the pattern | Upward. |
| Configuration | Look for a tall black candle in an upward price trend followed by a tall white candle. The two candles share a common opening price. |
If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.
The bullish separating lines candlestick pattern appears circled in red on the daily scale. The upward price trend leading to the pattern is not a steep one as you might expect. The candle height throughout April is small so when the first black candle of the bullish separating lines candle comes along, it is a tall one (include the shadows). The next day, a tall white candle appears and the opening prices between the two candles are within a few pennies of each other. The candle pattern meets the criteria of a bullish separating lines pattern.
The breakout from this bullish separating lines candlestick is upward when price closes above the top of the candle pattern in June. The upward breakout says that this candle acted as a continuation of the upward price trend, just as theory suggested.
-- Thomas Bulkowski
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