How to Read an In-Neck Pattern
Very similar to an on-neck pattern -- a small bounce that closes just inside the prior candle's close, within a downtrend.
CANDLESTICK PATTERNS
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2-candle pattern · Bearish continuation
An in-neck pattern closely resembles an on-neck pattern: a bearish candle followed by a small bullish candle that closes just inside (slightly above) the prior candle’s close, within a downtrend. The bounce is marginally stronger than an on-neck pattern’s, but still modest.
Like an on-neck pattern, it’s read as a continuation signal rather than a reversal — the attempted recovery falls well short of reclaiming meaningful ground, and the existing downtrend is expected to resume. The distinction between an in-neck and on-neck pattern mostly matters for precise classification; the trading implication is essentially the same.
Related patterns
This article is educational only and isn’t a recommendation to trade any particular instrument or pattern — no candlestick pattern works in isolation. See the full candlestick guide for how patterns like this one fit into a broader approach.