Although the On Neck signal, the In Neck signal, and the Thrusting Line signal are very similar in structure (there is a white candle that follows a black candle and opens below it), each pattern takes the price movement one step further than the last. It starts with the On Neck, in which the white candle closes below the black candle’s close. Then, in the In Neck, the white candle closes at or slightly above the black candle’s close. So where do you think the Thrusting Line pattern’s white candle closes? You guessed it! It closes above the black candle’s close (though below the body’s midpoint). With each pattern, the white candle inches ever so slightly upward. Today we’re focusing on the Thrusting Line candlestick pattern, where the white candle reaches its greatest height. Scroll down to learn how to spot and interpret this bearish continuation pattern.
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In a race, you might say that two competitors are neck and neck. They’re almost even, so close that the advantage may be constantly shifting from one to the other, or so close that the lead is virtually indistinguishable. In the world of Japanese candlesticks, one signal plays with this saying in its title: the In Neck. Because the bottom of the first candle and the top of the second candle are so close, they’re practically even. Always appearing in a downtrend, the In Neck candlestick pattern is a bearish continuation pattern. For a two-candle pattern, it’s quite rare, but you can use the tips below to find and interpret the In Neck signal.
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What’s that on your neck? No, not your actual neck! The neck on your candlestick chart. The oddly named On Neck candlestick pattern, sometimes known as the On Neckline, is a two-candle pattern that appears after a downtrend. A bearish (black) candle is followed by a bullish (white) candle, and the close price of the second candle is very near to the close of the first. I suppose in this metaphor, the neckline is the close of the first candle, which the second candle almost hits with its close, but I’m open to interpretation. What do you think? Is the entire candle the neck? In any case, to learn more about this bearish continuation signal, today we’re exploring the formation and meaning of the On Neck candlestick pattern.
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Isn’t it convenient when a candlestick pattern’s name corresponds directly with its appearance? The Three Gaps Down pattern has (fittingly) three distinct gaps that appear within a downtrend. The pattern is sometimes known by the Japanese word sanku, but do yourself a favor and use the English name to ensure that you remember it! This signal indicates that a reversal is on the way, and although it isn’t terribly well known, it is certainly worth adding to your repertoire. To get started, scroll down and review the signal’s formation and meaning.
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Also known by the Japanese word sanku, the Three Gaps candlestick pattern contains (surprise, surprise!) three distinct gaps. Although there are two different versions of the signal (one bearish, one bullish), today we’re focusing on the Three Gaps Up pattern, which looks like a small staircase with gaps between some of the gangly stairs. This strong, defined upward trend may indicate that a reversal is on the way. Although the Three Gaps Up pattern isn’t a tremendously popular signal, its simple message should not be overlooked. To better understand its arrangement and significance, simply scroll down.
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As a trader, it might feel like you spend all your time watching the waters and waiting for a signal to “tug at your fishing line.” Although you may have to throw a few fish back to sea along the way, once you spot the Bullish Hook Reversal pattern, you’ll know that you have a winner. A highly reliable signal, this short-to-medium candlestick pattern heralds a reversal in investor sentiment. However, if you want to catch this elusive pattern, you will need to learn (1) what it looks like and (2) what it’s trying to say. For help, use the succinct summary we’ve created below.
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Are you hooked on Bearish Hook Reversal patterns? Probably not, but even so, it never hurts to add another candlestick signal to your repertoire. The Bearish Hook Reversal is considered an advanced candlestick pattern, which means that it offers a higher degree of reliability and can be combined with gaps to form profitable trading strategies. It is a short-to-medium pattern that signifies that a reversal will soon be on the way. If you want to hook a Bearish Hook Reversal, scroll down to learn what to look for and what to expect afterward.
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When a candlestick drifts away from an established downtrend, gaps down, and then gaps back up into an uptrend, it becomes an island—a Bullish Island Reversal, to be exact. The further the candlestick drifts, the stronger the pattern’s implications. Although these islands aren’t very common, they are interesting and important nevertheless. In fact, the insight they provide could be pivotal as you decide your next trading move. To help you get started on your quest to find an Island Reversal, today we’re discussing the formation and meaning of the bullish variety.
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No man is an island (according to John Dunne, that is), but some candlestick patterns are. Separated from the rest of the price action, completely broken off and drifting, a Bearish Island Reversal pattern is a gap up in a bull trend. When the signal finally gaps back down and enters the price action again, the trend reverses and becomes bearish. This may not be an island in the sun, but it’s certainly worthy of your attention. To help you spot this Island Reversal on the map, let’s discuss its landmarks (i.e., what it looks like) and its impact on the environment (i.e., what it means for traders). 
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Even if you haven’t seen Hitchcock’s The Birds, I wouldn’t be surprised if the sight of two black crows circling overhead alarmed you. Crows are an omen, some believe—a portent of evil. Both in everyday life and in the world of Japanese candlesticks, they foreshadow bad news on the horizon. We’ve already discussed Three Black Crows, but even two crows can have a big impact. Enter the Upside Gap Two Crows candlestick pattern. A bearish reversal pattern, the Upside Gap Two Crows builds over three days and signals the start of a downtrend. Without feathers or beaks, how will you spot this pattern and understand its implications? Let’s find out . . .
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