Neck line for Head and shoulders pattern

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The book Technical Analysis of the Financial Markets explains how to draw a neckline for H&S pattern.

In the diagram, a flatter trend line can be drawn under the reaction lows (points B and D). But instead, the author uses points D and G to create the trend line and it starts above point B. What is the reasoning behind doing this?

  • Line BD would be steeper, not flatter. Right? Line 2 was drawn to connect Points D and G for whatever reason. Does the book not explain why? – JoeTaxpayer Jul 13 at 12:04
  • @JoeTaxpayer there is no explanation in the book for connecting points DG instead of points BD – trader Jul 15 at 13:36

The correct way to create a trend line is to connect the early points (B and D) and project forward, as the author did with the other trend line.

Either the author made a small inadvertent mistake or instead, he knowingly created a trend line with points D and G to make it appear that this H&S pattern was precisely correct.

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