The invention provides a method for displaying neon effect; a special LED light source is used for generating refraction and reflection through a prism light band; the light is reflected with a porous plate with color fluorescent effect to form neon effect so that various images and display devices can be formed; and the device is quick and convenient to mount so that the processing pollution is reduced. The method has the characteristics of energy preservation, environmental protection, novel display, large visual angle, less failure, high wind resistance, safety and stable performance, thereby increasing the visual transmission distance, expanding the visual transmission angle, improving the brightness, prolonging the service life, and reducing the energy consumption and operation cost; and the method can be widely used in various display devices indoors and outdoors.