BULLISH SEPARATING LINES PATTERN (BSLP)
A black stick followed by a White Marubozu
Characteristics:
1. Market is on an uptrend;
2. Day 1 has a long black candlestick;
3. Day 2 has the same opening price as Day 1 (or very close to it); and
4. We have a White Opening Marubozu on Day 2.
Brief Explanation:
This is a White Opening Marubozu next to a black body. During an uptrend, after we see a black stick on Day 1, the market gaps up sharply higher when it opens with a price equal to Day 1’s opening. It also closes the day at a higher level. This suggests that the bulls have regained control and the uptrend will continue.
Notes:
1. The second “body” must be a White Opening Marubozu
2. A confirmation on Day 3 is necessary to ensure that the rally continues (through a white stick, a large gap up or a higher close).
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