For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Patterns: “In Neck Pattern” and “On Neck Pattern”.
In Neck Pattern and On Neck Pattern
– Normally they should be a signal of continuation of the current Trend.
– They occur during a Downtrend; confirmation is required by the candles that follow the Pattern.
In Neck Pattern
– The First Candle is long and black.
– The Second Candle is white; it has the Close near or at the same level of the Close of the First Candle. Moreover, it has the Open below the Low of the First Candle.
On Neck Pattern
– The First Candle is long and black.
– The Second Candle is white; it has the Close near or at the same level of the Low of the First Candle.