On-Neck (On-Neck) is two candles in a downtrend: a large bearish candle, then a small bullish candle that opens below the low of the first and closes exactly at the first candle low (the low level). A weak bounce that stalls at the low confirms weak buyers and a continuing decline.
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PATTERN ID
SignalBearish ▼
Reliability★★★☆☆
Win Rate60%
Expected move−3–7%
TimeframeDaily
ConfirmationRequired
The short answer
What is the On-Neck Line candle?
On-Neck (On-Neck) is two candles in a downtrend: a large bearish candle, then a small bullish candle that opens below the low of the first and closes exactly at the first candle low (the low level). A weak bounce that stalls at the low confirms weak buyers and a continuing decline.
How to recognize the On-Neck Line candle?
An established downtrend. First candle: a large bearish candle. Second candle: a small bullish candle that opens below the low of the first.
Is the On-Neck Line candle bullish or bearish?
It belongs to the bearish continuation patterns, is made of two candles, and confirmation is required. Its reference success rate is 60%. You can spot it yourself on live daily candles for any symbol in the members' technical terminal. Open the technical terminal →
Pattern illustration
Large falling ← a small rising candle that closes exactly at the low of the first
How to identify the pattern
Step-by-step checks
An existing downtrend
First candle: a large bearish one
Second candle: a small bullish candle that opens below the low of the first
The second candle closes exactly at the low of the first (the neck)
Trading psychology
The power struggle between buyers and sellers
Buyers try a bounce, but it fades right at yesterday's low and wins back no ground. This helpless bounce shows sellers are still in control, so the decline often resumes.
Outlook and confirmation
Entry conditions and expected price move
Needs confirmation in the next session
Bearish continuation of ~60% needs confirmation by a break of the low. Expect a decline of 3–7%. The stop-loss sits above the high of the second candle.
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