On Neck Pattern Candlestick Pattern – School
Definition of On-Neck Pattern
The On-Neck pattern consists of two candlesticks and indicates the end of a downtrend. This pattern is called On-Neck because the two candlesticks meet together, forming a neckline.
On-Neck Pattern simple Explanation
The On-Neck pattern indicates that a bullish reversal is taking place.
The first candlestick is bearish and indicates the continuation of a downtrend. The second candlestick is bullish, but its true body opens below the gap of the first candlestick.
It then closes near the close of the first candlestick. Since they meet at the same point, this pattern is called the On-Neck pattern.
