In Neck

The In Neck candlestick pattern is a slightly different version of the On Neck pattern.

Just like the On Neck pattern, the In Neck begin with a large full bodied bearish candle.

The second candle should be a smaller bullish candle that opens below the low of the first candle and moves up to close at or slightly above the close of the first bearish candle.

This two candle pattern is a bearish continuation pattern just 53% of the time, according to Bulkowski.

A low accuracy means price can basically break out in either direction, but fortunately, when price does break out it does so strongly.

This pattern’s weakest breakouts occur in the context of a break to the downside in a heavy bullish trend.

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