Definition:
Bearish In Neck Pattern is characterized by a white
candlestick that has a closing price slightly above
the previous black candlestick’s low during a
downtrend. If the white candlestick’s low is broken
down, the downtrend continues.
Recognition Criteria:
1. Market is characterized by downtrend.
2. We see a long black candlestick in the first day.
3. Then we see a white candlestick on the second day
with an opening price that is below the low of the previous
day and whose closing price is barely above or equal
to the closing price of the previous day.
Explanation:
The Bearish In Neck Pattern is an undeveloped version
of the Bullish Piercing Line Pattern with a much lower
close. The white body on second day closes near the
close of the previous black day, at the lower part of
the body. The actual definition requires a closing price
just inside the previous day's body and slightly above
its close. So it is a higher close than the Bearish
On Neck Pattern, but not much.
Important Factors:
The white candlestick of the Bearish In Neck Pattern
must be small.
Confirmation is required on third day in the form of
a black candlestick, a gap down or a lower close.
