In Neck Pattern

In Neck is one of the commonly used candlestick patterns in quantitative trading, representing a bearish reversal pattern.

Calculation Principle

In Neck pattern is identified by the following conditions:

1. First day: A long bearish candle
2. Second day: A bullish candle
3. Second day's close is close to the first day's close
4. The body of the second candle is shorter than the first
5. The open of the second candle is below the first day's close

Parameter Description

• Input Parameters:
  • Open: Opening price
  • High: Highest price
  • Low: Lowest price
  • Close: Closing price
• Parameters:
  • penetration: Body penetration ratio (default: 0)

Usage Recommendations

1. Use in combination with other technical indicators
2. Pay attention to the overall market trend
3. Monitor volume confirmation
4. Set reasonable stop-loss levels
5. Watch for false breakouts

Notes

• Ensure data quality
• Pay attention to pattern completeness
• Consider market environment
• Watch for false signals
• Combine with fundamental analysis
• Pay attention to risk control
• Regularly evaluate strategy effectiveness
• Optimize parameters