Aug 24, 2011, 11.08 AM IST
Bearish Separating Line is a bearish continuation pattern. It is exact opposite of Bullish Separating Line.
Bearish separating lines should be traded during a strong downtrend. Traders should make sure that the two candlesticks in the formation are of a decent size. A short position can be taken after the close of the second candlestick.
Strategy: Short positions can be created post close of second candle. The two candles in this pattern should be of decent size.
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