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Measured Move 20A: Neck line for double top
I am bit confused on what Al refers to when he says neckline on the double top in 20A at 6:17 on the video. Can you some body help? The screenshots seem to be blacking out.
A traditional double top has an "M" shape where the neckline is the middle point of the "M". The minimum expected move of a successful double top is a measured move down from the top of the "M" to the middle point (the neckline). In video 20A Al gives an example of a failed double top:
In this example if the market turned down after bar 3 the chart would have created a successful double top shape with point 2 being the neckline. The expected move would be a measured move down from point 1 or 3 to point 2.
This is an example of a failed double top because instead of the market turning down at point 3 it broke out to the upside. In this case the expected move is a measured move up from point 2 (the neckline of what would have been a double top) to point 1. The measured move target is indicated by the line at point 4.
Thanks for clarifying with a picture and numbering on it. It really helped