The on neck pattern occurs after a downtrend when a long real bodied bearish candle is followed by a smaller real bodied bullish candle which gaps down on the open but then closes near the prior candle’s close.
Below is an example of On-Neck Pattern Candlestick Charts Pattern:
The pattern is called a neckline because the two closing prices are the same or almost the same across the two candles, forming a horizontal neckline.
Tags:
Candlestick Patterns