Bearish In-Neck On-Neck Thrusting Continuation Patterns
Direction : Bearish
Type : Continuation
Reliability : Moderate
First day we see a long red candle
The second day is blue day, opening below the low of the first day and closing barely into the body of the first day.
In non-FX markets the In Neck Starts with the red continuation candle, day two gaps down to open well below the close of day one then rallies back up to day-oneclose. In Neck suggests that the despite the large bullish move by the blue Star on day-two when the market moves deeply down, only to rally back it, the market is still continuing the downtrend and capable of additional bear moves in days to come.
The On Neck suggests very similar analysis of market sentiment. But because the On Neck does not trade up to the previous day close or into day-onecandle, it serves as a strong bearish continuation signal.
Trusting Patterns (which look similar to Bearish Piercing Lines) again offers similar analysis. But because the Trusting pattern trade well into day-one candle, it is the weakest bearish continuation signal.
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