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| Type: |
Continuation |
| Relevance: |
Bearish |
| Prior
Trend: |
Bearish |
| Reliability: |
Medium |
| Confirmation: |
Suggested |
| No. of
Sticks: |
2 |
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Definition:
Bearish On Neck Pattern is a black candlestick followed
by a small white candlestick, which is characterized
by a closing price near the low of the black candlestick
during a downtrend. If the low of white candlestick
is broken down, market goes further down.
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,
which opens below the low of the previous day. This day
does not need to be a long day or it might resemble the
Bullish Meeting Line Pattern.
4. The closing price of the second day is either the low
price of the first day or almost same.
Explanation:
The Bearish On Neck Pattern is an undeveloped version
of the Bullish Piercing Line Pattern. It is a similar
pattern except that the second day's white body only
gets up to the previous day's low. The Bearish On Neck
Pattern usually appears during a decline and is a typical
pattern in a downtrend. Bearishness increases with the
long black first day. The market shows a gap down on
the second day, but cannot continue the downtrend. Prices
start going up but they stop at the previous day's low
price. This bearish occurrence is uncomfortable for
potential bottom pickers. The downtrend may continue
for a short while.
Important Factors:
The Bearish On Neck Pattern is different from the Bullish
Meeting Lines Pattern.
The likelihood of the downward trend increases if the
trading volume on the second day is high.
Confirmation on third day is required in the form of
a black candlestick, a gap down or a lower close.
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Disclaimer |
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The candlestick patterns explained herein are intended to inform.
They come with no warranty of any kind. If you should choose this
information for your investment decisions, you do so at your own
risk. Investing can be a very dangerous venture and it is you who
must assume the entire cost and risk involved in all of your investment
decisions, should you choose to follow this system or use this information.
The information contained on the Candlesticker.com web site is drawn
from sources believed to be factual and reliable, but in no way
does Candlesticker.com represent or guarantee the accuracy or completeness
thereof, nor in providing it, does Candlesticker.com assume any
liability.
The information found on the Candlesticker.com web site is protected
by the copyright laws of the United States and may not be copied,
or reproduced in any way without the expressed, written consent
of the editors.
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