On-Neck Pattern
Definition
Big red candle, then a small green that closes only AT the prior LOW — a failed rescue.
Psychology
Buyers tried to bounce but couldn't even re-enter yesterday's range — weak.
Real-life analogy
💡 The rescuer reaches the drowning swimmer... and stops at the water's edge.
Confirmation
A close below the small candle's low resumes the downtrend.
Invalidation
A close above the red candle's midpoint flips the read.
Historical behaviour
Best in clear downtrends, not chop.
Illustrative success rate
~55-60% continuation · Medium reliability
Common beginner mistakes
- • Reading any small bounce as reversal hope
- • Mixing up the neck-pattern family
Quick quiz — did you understand?
1. Is the On-Neck Pattern generally considered bullish, bearish, or neutral?
2. What is the best practice before acting on a On-Neck Pattern?
3. Which is a common beginner mistake with the On-Neck Pattern?
Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.