The on-neck pattern has two candles: a large bearish candle, then a bullish candle that opens below the first candle's low but closes only near the first candle's close (the 'neck') without recovering the decline.
Bulls attempt a bounce but lack follow-through. The bullish candle can only recover to near the prior close, unable to make real progress, suggesting continued heavy selling pressure and downtrend continuation.
A downtrend continuation signal (win rate 58%). Consider entering short after confirming the second candle can't break above the neck level. Stop-loss above the second candle's high.
Low signal strength; needs other technical confirmation. If the second candle closes above the neck, the pattern fails and a real bounce may be underway.