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Neckline
Chart PatternsThe support or resistance line connecting the troughs (head and shoulders) or peaks (inverse H&S) of a reversal pattern. A break through the neckline confirms the pattern.
Related Terms
Head and Shoulders
A bearish reversal pattern with three peaks: a higher middle peak (head) flanked by two lower peaks (shoulders).
Support
A price level where buying pressure tends to overcome selling pressure, causing the price to stall or bounce upward.
Resistance
A price level where selling pressure tends to overcome buying pressure, causing the price to stall or reverse downward.