In Neck

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Figure 1. In Neck pattern.

Figure 1. In Neck pattern.

Japanese name: irikubi
Forecast: bearish continuation
Trend prior to the pattern: downtrend
Opposite pattern: none

Construction:

  • First candle
    • a candle in a downtrend
    • black body
    • appears on as a long line
  • Second candle
    • white body
    • the opening price below the previous closing price
    • the closing price is slightly above the previous closing price (up to 15% of the first line body)

 

The In Neck pattern is a two-line bearish continuation pattern what implies that the pattern appears in a downtrend. The first line is a black candle appearing in a downtrend. The second line is a white candle, and the lower and upper shadow length cannot exceed more than twice the body length. Additionally the second candle's closing price needs to be slightly above the previous closing price (up to 15% of the first line body).

The pattern should be confirmed by a following candle closing below the second's line closing price.

The In Neck pattern rarely occurs on the candlestick charts.

 

Figure 2.

Figure 2. An In Neck pattern, appearing within a downtrend, announces its continuation. A Black Spinning Top candle, following the pattern, is problematic. On the one hand, it confirms the In Neck occurrence, on the other hand, it is recognized as a valid occurrence of the Hammer pattern, which is a bullish reversal pattern.
The key is a Falling Window pattern, which is formed by two candles following the In Neck pattern. The Falling Window and the Hammer are so-called conflicting lines, i.e. opposite patterns occurring at the same time on the chart. However, the Falling Windows, in general, even if not very big as in this example (only $0.06), should be treated seriously. Indeed, the Falling Window confirmed the In Neck pattern.
Nevertheless, the In Neck pattern is so rare on the charts that may be seen as a kind of oddity rather than a pattern to be traded on daily basis.

 

In Neck statistics

Below you can find some In Neck pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics, for other markets and periodicity. Click here to find out more!

Pattern name: In Neck
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (In Neck): 202
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (In Neck): 0.03 %
Average frequency: 11,071.4
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 43 64 42 53
% of
Occurrences
0.00 % 21.29 % 31.68 % 20.79 % 26.24 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 41 55 39 67
% of
Occurrences
0.00 % 20.30 % 27.23 % 19.31 % 33.16 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
ADM 2 2,517.0 2 100.00 % 2 100.00 %
HRB 3 1,678.0 3 100.00 % 3 100.00 %
IFF 2 2,517.0 2 100.00 % 2 100.00 %
MHK 2 2,517.0 2 100.00 % 2 100.00 %
AIZ 2 1,435.0 0 0.00 % 1 50.00 %
DOV 2 2,517.0 1 50.00 % 1 50.00 %
OXY 2 2,517.0 1 50.00 % 1 50.00 %
PGR 2 2,517.0 1 50.00 % 1 50.00 %
PRU 2 1,704.5 1 50.00 % 1 50.00 %
PXD 2 2,517.0 1 50.00 % 1 50.00 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
MAS 3 1,678.0 3 100.00 % 3 100.00 %
MLM 3 1,677.0 2 66.67 % 2 66.67 %
NOV 3 1,566.0 2 66.67 % 2 66.67 %
VZ 3 1,678.0 2 66.67 % 2 66.67 %
ACN 2 1,754.0 1 50.00 % 1 50.00 %
M 2 2,517.0 1 50.00 % 1 50.00 %
OXY 2 2,517.0 1 50.00 % 1 50.00 %
PXD 2 2,517.0 1 50.00 % 1 50.00 %
RRC 2 2,517.0 1 50.00 % 1 50.00 %
SEE 2 2,173.0 1 50.00 % 1 50.00 %
Pattern name: In Neck
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (In Neck): 81
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (In Neck): 0.05 %
Average frequency: 7,580.7
Efficiency statistics (5 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 12 33 16 20
% of
Occurrences
0.00 % 14.81 % 40.74 % 19.75 % 24.70 %

 

Efficiency statistics (10 candlesticks testing period)

Efficiency NO DATA FALSE LOW MEDIUM HIGH
Number of
Occurrences
0 11 29 15 26
% of
Occurrences
0.00 % 13.58 % 35.80 % 18.52 % 32.10 %

 

10 top best performing symbols

Occurrences Statistics 5 candlesticks testing period
(HIGH efficiency)
10 candlesticks testing period
(HIGH efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
PH 1 1,258.0 1 100.00 % 1 100.00 %
PLD 1 1,258.0 1 100.00 % 1 100.00 %
RRC 1 1,258.0 1 100.00 % 1 100.00 %
SWN 1 1,258.0 1 100.00 % 1 100.00 %
TSCO 1 1,258.0 1 100.00 % 1 100.00 %
USB 1 1,258.0 1 100.00 % 1 100.00 %
XEC 1 1,258.0 1 100.00 % 1 100.00 %
AIZ 2 629.0 0 0.00 % 1 50.00 %
DGX 2 629.0 1 50.00 % 1 50.00 %
TIF 2 629.0 1 50.00 % 1 50.00 %

 

10 top worst performing symbols

Occurrences Statistics 5 candlesticks testing period
(FALSE efficiency)
10 candlesticks testing period
(FALSE efficiency)
Symbol Number of
Occurrences
Average
Frequency
Number of
Occurrences
% of
Occurrences
Number of
Occurrences
% of
Occurrences
GE 1 1,258.0 1 100.00 % 1 100.00 %
HP 1 1,258.0 1 100.00 % 1 100.00 %
ISRG 1 1,258.0 1 100.00 % 1 100.00 %
KORS 1 889.0 1 100.00 % 1 100.00 %
M 1 1,258.0 1 100.00 % 1 100.00 %
RHT 1 1,258.0 1 100.00 % 1 100.00 %
SEE 1 1,258.0 1 100.00 % 1 100.00 %
VNO 1 1,258.0 1 100.00 % 1 100.00 %
MLM 3 419.3 2 66.67 % 2 66.67 %
ACN 2 629.0 1 50.00 % 1 50.00 %

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