Bearish On-Neck Continuation Cryptocurrency Chart Pattern.

Crypto Candlestick Chart Pattern Recognition: Bearish On-Neck Continuation pattern

By analyzing the most recent OHLCV price movements of the last days. Daily updated!

Bearish On-Neck Candlestick Pattern

The Bearish On-Neck pattern is a two-day candlestick pattern that's often considered a continuation signal, indicating the persistence of a prevailing downtrend. This pattern is characterized by a long black (or red) candle followed by a smaller white (or green) candle, where the opening price of the second candle is approximately equal to the closing price of the first.

Formation of the Bearish On-Neck Pattern:

• The first day sees a strong downward movement, represented by a long down (bearish) candle, indicating that sellers are in control.
• The second day opens with a gap down but recovers throughout the day to close near the closing level of the first day, forming an up (bullish) candle.
• Despite the bullish activity on the second day, the market fails to close above the closing price of the first day.

In the Bearish On Neck function:

• The down Candle function ensures that the first day is represented by a down (bearish) candle.
• The up Candle function ensures that the second day is an up (bullish) candle.
• The condition $first_day['close'] > $second_day['low'] ensures that the closing price of the first day is above the low price of the second day.
• The abs function and $epsilon together ensure that the closing price of the first day is almost equal to the opening price of the second day, allowing for a small variation.

The Bearish On-Neck pattern signifies that despite a temporary recovery by the bulls, the bears still have significant control over the market. As a result, the pattern typically suggests that the current downtrend is likely to continue. Traders should, however, look for further confirmatory signals in the following days to validate this continuation pattern and make informed trading decisions.