Pattern Detail

Bullish On Neck Line

Two-candle pattern: a down candle, then a weak up candle that gaps lower and only claws back to the first candle's low.

A real Bullish On Neck Line on NQ daily bars, Feb 11, 2016. Price then followed through 4.9% over the next 5 bars. The bright candles are the pattern; the dimmed bars are surrounding context.
A real Bullish On Neck Line on NQ daily bars, Feb 11, 2016. Price then followed through 4.9% over the next 5 bars. The bright candles are the pattern; the dimmed bars are surrounding context.

Shown only on the markets where this pattern occurs.

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How to read this

Everything here is in R, the setup's own risk. 1R is the distance from the entry (the pattern's closing price) to where it would be proven wrong — its lowest low over the 2 bars that form it. So "offered 2R" means price ran twice that distance in your favor at some point before the stop. It does not assume you took profit there: a target is a strategy choice.

Room offered (≥ 1R)

50.0%

Too few to trust

Offered at least 1× its risk before the stop, vs 41.8% for a random long entry (+8.2 pts).

Move size vs normal

0.82×

Realized range over the next 20 bars vs a random bar. Precedes a quieter stretch.

Typical room (20-bar)

1.34R

Average run in favor (capped at 3R), vs 1.09R for a random long entry.

Summary

Offered ≥1R 50.0% of the time vs 41.8% for a random long entry. The 8.2-point gap is no bigger than the ±27.9-point margin of error you would get by chance from 12 occurrences. Not a reliable edge.

Room offered, this setup vs a random long entry

Only 12 occurrences. The breakdown below is shown in full, but a sample this small is anecdotal, a hint, not a measured edge. That is usually a limit of available history, not a flaw in the pattern. For a firmer read, try a lower timeframe or a more active instrument.

Outcome This setup Random entry Edge
Offered ≥ 1R 50.0% 41.8% +8.2
Offered ≥ 2R 33.3% 28.0% +5.3
Offered ≥ 3R 16.7% 19.9% -3.2
Stopped < 1R 41.7% 56.4% -14.7
Went sideways 8.3% 1.8% +6.6

12 occurrences · 355,242 random-entry controls · 20-bar horizon

A bullish on neck line is a two-candle shape that looks like a bounce but barely is one. A long down candle comes first. The next candle gaps lower, then rallies just enough to close right at the first candle’s low. Buyers showed up, but they could only lift price back to the prior low and no further. The rebound is shallow, which is why this pattern often disappoints despite the up candle.

How to spot it

  • The market is falling into the pattern.
  • The first candle is a down (red) candle that fits the decline.
  • The second candle opens lower, gapping below the first candle’s close.
  • It closes up (green) but only reaches the first candle’s low.
  • The close stalls at that low rather than pushing into the first candle’s body.
  • The shallower the bounce, the weaker the signal it gives.

The dashed box on the chart above marks the two candles on a real occurrence, with the decline before and the move after.

The psychology

The long down candle hands the session to the sellers, and the next bar opens lower still, deep in their territory. That lower open is a comfortable place for the people who are short. Then buyers try to answer. They lift price off the lows and turn the candle green, but the rally runs out of steam exactly at the first candle’s low and goes no further.

That stalling point is the whole story. The buyers had their chance to push into the prior body and reclaim ground, and they could not. They lifted price back to where the last leg of selling began and then quit. Sellers who are still in the driver’s seat read that weak bounce as room to keep pressing, since the attempt to turn the trend never threatened them. The shallower the recovery, the more it looks like a pause in the decline rather than the start of a rebound.

How often that shallow bounce actually leads anywhere is what the figures below set out to answer.

Does it actually work?

A pattern is a setup, not a trade, so the honest question is not “did it win” but “how much room did it tend to offer before it was proven wrong.” The tabs below answer that across five futures markets (Nasdaq, S&P 500, gold, crude oil, natural gas) and seven timeframes from one minute to one day.

For each occurrence we measure the room the move offered in units of the pattern’s own risk, then set it against what a random entry on the same market would have done. When the pattern offers more room more often than chance, that shows up as a real edge. When it does not, the page says so plainly.

Read it with the sample size in view. On the faster timeframes a pattern can fire thousands of times, enough to trust. On the daily chart it is far rarer, so treat those numbers as a hint rather than a verdict. Thin samples are flagged for you on the page.

How we measured it

  • Entry is the close of the final candle of the pattern.
  • One unit of risk, 1R, is the distance from that close down to the pattern’s invalidation point: the lowest low of the two candles that form it. If price trades through there, the setup is wrong.
  • We then follow the next 20 bars and record how far price ran in your favor, in multiples of that risk, before the stop was hit.
  • Every figure is set against a random entry on the same market and timeframe, so the market’s own drift is accounted for.
  • No profit target and no position sizing. Where you take profit is a strategy choice; this measures only the room the pattern tends to give.

What this page does not cover

  • Volume on the pattern’s candles.
  • Whether the pattern forms at a meaningful support level.
  • Pairing it with a trend filter or a confirming signal.
  • A profit target or position sizing. We use the pattern’s own invalidation point as the stop to define risk, but where you take profit, and how much you put on, are strategy decisions this page leaves to you.

Sample Bullish On Neck Line Firings (12)

Based on data through Apr 29, 2026

Time Risk (pts) Room offered Result
May 14, 2024, 8:30 AM CDT 21.25 3.00R Ran ≥1R
Nov 28, 2023, 8:30 AM CST 24.5 0.34R Stopped
Jul 21, 2021, 8:30 AM CDT 26 2.60R Ran ≥1R
Oct 14, 2019, 8:30 AM CDT 5.75 0.00R Stopped
Aug 24, 2016, 8:30 AM CDT 5.5 0.68R Stopped
Dec 29, 2014, 8:30 AM CST 4.75 2.00R Ran ≥1R
Dec 4, 2014, 8:30 AM CST 7 1.64R Ran ≥1R
Dec 11, 2013, 8:30 AM CST 2.5 1.80R Ran ≥1R
May 26, 2011, 8:30 AM CDT 7.25 0.97R Flat
Mar 9, 2010, 8:30 AM CST 5.25 3.00R Ran ≥1R
Jul 4, 2008, 9:30 AM CDT 0.5 0.00R Stopped
Jun 16, 2008, 1:05 PM CDT 1.75 0.00R Stopped

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