Two opposite-colored candles that share the same open. Even though the second candle starts with the opposite color of the prior day, it opens at the same price and runs back in the trend direction. A one-day reversal denied, confirming continuation.
Separating Lines is a two-candle continuation pattern in which two opposite-colored candles share the same open.
In the middle of a trend, a single candle appears in the opposite color of the prior day. But the next day, price gaps back to open at the very same price as that opposite-colored candle's open, and from there runs straight in the original trend direction.
In an uptrend, a bearish candle is followed by a bullish candle that reopens at the same open and pushes higher. The prior day's weakness is wiped out overnight, and buyers reclaim control. In a downtrend, the picture flips: a bullish candle is followed by a bearish candle that separates downward from the same open.
How to Read
OANDA:USDJPY
The name comes from the way the two candles share a single point, the same open, yet separate from it in opposite directions. The starting point is identical, but the destination lands on the side opposite the prior day, that is, on the side of the original trend.
The heart of the pattern is a single fact: price reopens at the same open in the reverse direction. The prior day's opposite-colored candle pushed against the trend once, but the next open erases its starting level entirely, and the market sets off again in its original direction.
How to Read
OANDA:USDJPY
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