Back to Glossary
General TradingO

On Neck

A bearish continuation candlestick pattern consisting of a long bearish candle followed by a smaller bullish candle that closes near the low of the first candle, suggesting the downtrend will likely continue.

Example

The trader spotted an on neck pattern on the daily EUR/USD chart and added to her short position, expecting the downtrend to continue after the weak bullish candle.