How to determine the neckline of a 'double bottom' pattern? The horizontal line above the two low points in the 'double bottom' pattern is the 'neckline'. The neckline of the 'double bottom' pattern is a horizontal line, since it only has one point, we can only draw a horizontal line. When the price rises and breaks through the neckline, it is a signal to go long. This is a relatively traditional method of entering the market by observing the neckline, but in actual trading, the entry point when the price breaks through the neckline is not ideal. Because when the price breaks through the neckline, the upward trend has already been in progress for a while, and there will be a need for a pullback after the breakout. Of course, for beginners, entering the market by observing the neckline can still serve as a reference. When your skills reach a certain level, you will be able to realize the shortcomings of entering the market by observing the neckline, thus optimizing the entry point and trying to enter as early as possible.
