Bearish in neck

Type: Continuation

Relevance: Bearish

Prior Trend: Bearish

Reliability: Medium

Confirmation: Suggested

No. of Sticks: 2

Bearish In Neck Pattern is characterized by a white candlestick that has a closing price slightly above the previous black candlestick’s low during a downtrend. If the white candlestick’s low is broken down, the downtrend continues.

Recognition Criteria:

1. Market is characterized by downtrend.

2. We see a long black candlestick in the first day.

3. Then we see a white candlestick on the second day with an opening price that is below the low of the previous day and whose closing price is barely above or equal to the closing price of the previous day.

Explanation: 

The Bearish In Neck Pattern is an undeveloped version of the Bullish Piercing Line Pattern with a much lower close. The white body on second day closes near the close of the previous black day, at the lower part of the body. The actual definition requires a closing price just inside the previous day's body and slightly above its close. So it is a higher close than the Bearish On Neck Pattern, but not much.

Important Factors:

The white candlestick of the Bearish In Neck Pattern must be small.

Confirmation is required on third day in the form of a black candlestick, a gap down or a lower close.