Friday, July 19, 2024

Neck

In this article, We learn about “Neck “.Let’s Go!

The Inner Neck pattern is a rare two-candlestick pattern created by a higher downward candle followed by a shorter upward candle that gapped down on the open but then The closing price is slightly higher than the previous candle’s closing price .

Since the neck occurs in a downtrend, the candlestick pattern is considered a bearish continuation pattern.

In Neck Pattern

The In-Neck Candlestick pattern consists of only two candles: one black and one white.

To identify intracervical, look for the following criteria:

  • A Downtrend must be ongoing.
  • A high black (bearish) candle must appear.
  • The

  • smaller white (bullish) candle must follow the black candle.
  • The opening price of the

  • white candle should be lower than the previous candle, but the closing price should be equal to or slightly higher than the closing price of the previous candle .
  • Neck Pattern Very similar to the neck pattern, the neck pattern also occurs during downtrends and indicates a continuation of the current trend.

    The biggest difference is that for the neck pattern, the second candle’s closing price is slightly lower than the previous candle’s lowest price .

    Since both patterns are almost the same, make sure you can tell the difference.

    meaning

    The bears take control and therefore the price is in a downward trend.

    The first candle that appears is bearish, continuing the downtrend, but the second candle is bullish.

    The white candle gapped down, opening lower than the black candle but closing slightly higher than the black candle, suggesting that the current trend may continue.

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