Neckline

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Related to neck: nick, Stiff neck, NECN

Neckline

The market level equal to a line connecting the two interim declines in a head and shoulders pattern.

Neckline

In technical analysis, a line, sometimes with zero-slope and sometimes with slight slope, representing a buy point on a head and shoulders pattern. In a chart showing a head and shoulders pattern, the "head" and "shoulders" fall toward a certain near-horizontal line before rising again; this is the neckline. When technical analysts see a security falling toward the neckline, they view this as a buy signal because historical patterns have shown that the security's price will rise soon thereafter. However, if the security falls significantly below the neckline, technical analysts see this as a reversal of a previous trend.

neckline

The line that connects the two lowest points on the intermediate declines of a head-and-shoulders chart pattern. In an inverted head-and-shoulders formation, the neckline connects the two intermediate tops. If the second shoulder breaks through the neckline, it is an indication of a major price movement in the direction of the breakout.
References in classic literature ?
Peyton Fahrquhar was dead; his body, with a broken neck, swung gently from side to side beneath the timbers of the Owl Creek bridge.
When it became maddeningly unendurable, he sprang, only to be jerked back by the ten strong men who held the rope to his neck. And wrath, and ferocity, and intent to destroy, passed out utterly from the tiger's inflamed brain, until he knew fear, again and again, always fear and only fear, utter and abject fear, of this human mite who searched him with such pain.
The rope about Ben Bolt's neck was passed up through the bars and rove through the block-and-tackle.
I fastened my fingers in the bristles at his neck and turned my eyes in the direction that his pointed.
Again he yielded to the tying of a thong around his neck by Grey Beaver, and again Beauty Smith came to claim him.
And then, after a few make-believe attempts, Bob actually did whirl and caught Daylight napping again and landed him in the old position with clasped arms around the neck.
He felt out the wounds of his neck and face, while his eyes embraced the fact that the white master was in possession of his rifle.
Akut thought of the creaking sound he had heard just before Molak's thick neck had snapped, and he shuddered.
"Loose the cords from the Christian's neck," he commanded, turning to the executioner, "and hang this man in his place, seeing that by his own confession he is the murderer."
This remonstrance was made as the batteau arrived close to the place where the deer was struggling with the water, his back now rising to the surface, now sinking beneath it, as the waves curled from his neck, the animal still sustaining itself nobly against the odds,
"Ay, ay, Jim, 'tis `the Birtwick balls'," said John, "she'll be as good as Black Beauty by and by; kindness is all the physic she wants, poor thing!" Master noticed the change, too, and one day when he got out of the carriage and came to speak to us, as he often did, he stroked her beautiful neck. "Well, my pretty one, well, how do things go with you now?
She leaned against Dolly's neck while he tightened the girths.