Closed reduction is typically indicated in neonates for specific conditions like congenital hip dislocation, clavicle fractures, and certain limb deformities. For example, a congenital hip dislocation (developmental dysplasia of the hip) is a common condition where the hip joint is not properly formed, and closed reduction can help in realigning the joint. Birth-related clavicle fractures, which can occur due to trauma during delivery, can also be treated using this method.