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General TradingN
Neckline
A key support or resistance level drawn across the lows (or highs) of a head and shoulders or double top/bottom chart pattern. A confirmed break of the neckline signals a trend reversal and is often used to project the price target of the move.
Example
“The trader waited for Bitcoin to break below the neckline of the head and shoulders pattern at $42,000 before entering a short position targeting $38,000.”