| In Neck |
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Pattern: continuation
Reliability: moderate
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Identification
A long black day is followed by a long white day that gaps down at the open and closes at the same price as the black day.
The Psychology
The In Neck pattern is a less severe relative of the On Neck pattern because it rallies further intraday. A gap down is seen as a buying and short covering opportunity, but failure to rally the stock up into the previous day's range indicates the buying most likely will be brief and the downtrend shall resume.
The bearish In Neck is similar to the bullish Piercing Line, bearish On Neck, bearish Thrusting, and bullish Meeting Lines. |
