Neckline
The support or resistance level connecting the lows (or highs) of a reversal pattern — the line whose break confirms the pattern.
The Neckline is a critical reference level in reversal patterns such as Head and Shoulders, Inverse Head and Shoulders, and Double Tops/Bottoms. It is drawn through the reaction lows (in a bearish H&S) or reaction highs (in a bullish IH&S).
A candle close through the neckline is the official confirmation of the reversal. The neckline also serves as a reference for the measured target (project the pattern height from the break). Slanted necklines (not horizontal) are common and equally valid.
- After the break, the neckline often acts as resistance on throwbacks (in H&S) or support (in IH&S).
- A close back above a broken neckline (in H&S) is a warning the setup may fail.
Related Terms
Breakout Retest
Price returning to test the former breakout level after the initial break — a resistance-turned-support confirmation and lower-risk entry point.
BeginnerDouble Bottom
Two consecutive troughs at approximately the same price level, forming a "W" shape, signalling support and potential upside reversal.
BeginnerDouble Top
Two consecutive peaks at roughly the same price level, separated by a pullback, signalling exhaustion and potential trend reversal downward.
BeginnerHead and Shoulders
A three-peak reversal pattern where the middle peak (head) is tallest, flanked by two shorter peaks (shoulders), signalling a trend top.
BeginnerInverse Head and Shoulders
A three-trough reversal pattern at a downtrend bottom: the middle trough is deepest, flanked by two shallower troughs, signalling a trend floor.
BeginnerThrowback
A post-breakout pullback to the broken resistance level, which now acts as new support — a common re-entry opportunity in trending markets.
BeginnerTriple Top
Three failed tests of the same resistance level, indicating sellers are firmly in control and a bearish breakdown is likely.
Beginner