On Neck Line / あて線
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A two-candlestick bearish continuation pattern appearing during a downtrend. After a large bearish candle, the second candle opens below the previous low but rallies only to the previous close level (at or below the low) before closing. Even weaker than the in neck line, showing sellers are completely in control. A highly reliable pattern for continued decline.
After the on neck line is confirmed, enter short when the next candle opens as a bearish candle. Entering when price drops below the second candle's low is also valid.
Project the first bearish candle's body length downward from the second candle's low. Or target the nearest support line.
Place a stop-loss slightly above the second candle's high. As with the in neck line, a tight stop is possible given the limited bounce.
If the second bullish candle's volume is less than the first bearish candle's, it indicates virtually no buying pressure, enhancing reliability for continued decline.