Glossary › neckline
Trading glossary · patterns
neckline
The line that joins the dips (or tops) between the peaks of a chart shape. Crossing it completes the shape.
The fuller meaning
The trigger line of reversal patterns: the low between the peaks of a double top, the high between the lows of a double bottom, or the line joining the lows beside the head of a head and shoulders. The pattern completes only on a close through it, which is also where measured moves start.
neckline.
Related words
apex · ascending triangle · bear flag · bull flag · busted pattern · chart pattern · continuation · continuation pattern · converging lines · cup and handle