guidance about confirming on-neck candlestick pattern and trade techniques used in it

On neck candlestick pattern aik bearish continuation pattern hay aur yeh downtrend main appear hota hay, pattern two candlestick par mabni hota hay aur in dono ki closing line almost same hoti hai jo aik neck form karti hay, is main aik long bearish candlestick kay baad aik small bullish candlestick banti hay, bearish candle small wicks par mabni hoti hay jab kay iski long real body hoti hay jo candle ki half say ziada hoti hay jab kay second candlestick yani bullish candlestick first candlestick kay half say thori hoti hay

On-neck candlestick pattern ki formation:



pattern two candles say mil kar banta hay, is ko bearish continuation pattern consider kia jata hay aur yeh downtrend main banta hay, is main shamil dono candles ki closing price almost same hoti hay jo aik horizontal neckline banati hain, isi neckline ki base par is pattern ko on-neck pattern kaha jata hay, yeh pattern in neck pattern kay kafi similar hota hay kiun kay yeh bhi down trend main form hota hay laikin dono patterns main small difference hay, in neck candlestick pattern main second candlestick first candlestick kay slight higher close hoti hay, lihaza pattern ko clearly identify karnay main time lagay to jaldbazi na karain

Observations and conditions for confirming on-neck pattern:





On neck pattern ki complete formation kay liay is ko kuch specific conditions ko meet karna hota hay, in conditions main pehli yeh kay bearish reversal pattern hay is liay yeh baat clear hona chaiay kay market main pehlay down trend hoy, is pattern ki pehli candlestick long aur bearish honi chaiay, is pattern ki second candlestick small aur white honi chaiay, second candlestick ka closing point previous candlestick kay low point sy match karna chaiay, second candlestick first candlestick kay low point say rise nhi karni chaiay, second candle ka close first candle kay closing point say nearly match karta hay aur yeh candle ki low price say further advance nhi karti

Strategy to be applied for trade:




Pattern main appear honay wali pehli candle market main bearish sentiment ko zahir karti hay aur bears kay full control ki indication milti hay, second day bullish sentiments ko zahir karti hay, laikin yeh second candle first candle say above close nhi ho pati jis ki waja say market current bearish trend ko hi continue karti hay, is pattern ki formation kay baad isko live trading main use karnay say pehlay back test karna important hay, traders ko is pattern par react karnay say pehlay confirmation kar laini chaiay jo pattern kay baad bannay wali candle say hasil hoti hay

Re: Guidance about confirming On-neck candlestick pattern and trade techniques used i

The on-neck candlestick pattern is a bearish reversal pattern that occurs after an uptrend. The pattern is formed by a black candlestick that closes slightly below the previous white candlestick's low. Here are some guidelines to confirm the on-neck candlestick pattern and some trade techniques that can be used:
Guidelines to Confirm On-Neck Candlestick Pattern:

1. Look for a preceding uptrend: The on-neck pattern should appear after an uptrend, indicating a possible reversal in the trend.
2. Check the shape of the candlesticks: The on-neck pattern consists of a black candlestick that closes below the previous white candlestick's low. The black candlestick should have a small real body with a long lower shadow.
3. Confirm the pattern with volume: Volume should be higher on the day the black candlestick is formed, indicating a possible shift in market sentiment.
4. Wait for confirmation: Wait for confirmation of the pattern before taking any trades. Confirmation can be in the form of a gap down or a lower close the next day.

Trade Techniques for On-Neck Candlestick Pattern:

1. Short Sell: A short sell can be initiated after the pattern is confirmed. A stop loss can be placed above the previous day's high, and a target can be set at the previous low.
2. Put Options: Put options can be used to take advantage of a bearish trend. A put option can be purchased with a strike price near the previous day's low and an expiration date that allows for enough time for the trend to develop.
3. Trailing Stop Loss: A trailing stop loss can be used to capture profits as the price moves lower. The stop loss can be adjusted after each downward move to protect profits.
4. Risk Management: It's important to manage risk when trading any pattern. Use proper position sizing and stop loss levels to protect capital.