Japanese Candlestick Bearish In-Neck On-Neck Patterns

First day we’d see a long red candle. The second day is blue day, opening below the low of the first day and closing barely into the body of the first day.

Direction : Bearish
Type : Continuation
Reliability : Moderate

In Neck


On Neck


In non-FX markets the In Neck starts with the red continuation candle, day two gaps down to open well below the close of day one – then rallies back up to day-one’s close.

In Neck suggests that the despite the large bullish move by the blue star on day-two – when the market moves deeply down, only to rally back it, the market is still continuing the downtrend and capable of additional bear moves in days to come.

The On Neck suggests very similar analysis of market sentiment. But because the On Neck does not trade up to the previous day’s close or into day-one’s candle, it serves as a strong bearish continuation signal.

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