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Bearish Separating Lines

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Bearish Separating Lines

Bearish Separating Lines is a technical analysis term used to describe a chart pattern in which a security’s price falls below a previous support level. This pattern is considered to be a bearish indicator, as it suggests that the security’s price is likely to continue to decline. The pattern is formed when the security’s price breaks below a previous support level, which is typically a low point in the security’s price history. This break below the support level is known as a “separating line” and is used to signal a bearish trend in the security’s price.

History of Bearish Separating Lines

The concept of Bearish Separating Lines has been around since the early days of technical analysis. The term was first used by Charles Dow, the founder of Dow Theory, in the late 19th century. Dow Theory is a form of technical analysis that is still used today. According to Dow Theory, a security’s price will often break below a previous support level, signaling a bearish trend in the security’s price. This break below the support level is known as a “separating line” and is used to signal a bearish trend in the security’s price.

Comparison Table

Pattern Indication
Bearish Separating Lines Bearish Trend
Bullish Separating Lines Bullish Trend

Summary

Bearish Separating Lines is a technical analysis term used to describe a chart pattern in which a security’s price falls below a previous support level. This pattern is considered to be a bearish indicator, as it suggests that the security’s price is likely to continue to decline. The pattern is formed when the security’s price breaks below a previous support level, which is typically a low point in the security’s price history. For more information on Bearish Separating Lines, investors can visit websites such as Investopedia, The Balance, and Investing.com.

See Also

  • Bullish Separating Lines
  • Support Level
  • Resistance Level
  • Trend Line
  • Moving Average
  • Relative Strength Index (RSI)
  • Bollinger Bands
  • MACD
  • Stochastic Oscillator
  • Candlestick Patterns

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