The lesson on YouTube
Watch. Then work through the idea.
Watch the English lesson first, then use the worked example and quiz below to check the idea. The article is a companion, not a transcript.
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What is actually happening?
The formation describes three selected peaks with the middle higher. The two intervening lows define a reference that may slope. Recognizing the outline is not proof of a neckline crossing or of the projected outcome.
Guided example · Indexed swing / close observations · one time unit per point
The neckline moves with time
Calculate its value at the actual test time instead of substituting a horizontal line.
Restart & example assumptions
Authored synthetic observations, shown in sequence. Every comparison uses only the revealed data. This is a worked learning example, not live prices, broker execution or a profitability backtest. Follow the article’s exact definitions; measurements and pattern names alone do not authorize a trade.
For charts: tap a candle or swing to inspect it; drag horizontally to browse; wheel or +/− to zoom; arrow keys to inspect; Home to restore the step view.
Make the conditions explicit.
The source lesson’s peaks are 106, 112 and 107. Specify shoulder tolerance, low selection and the time coordinates used for the reference.
For the numerical extension here, take first intervening low 100 at time 2 and second low 101 at time 4. Evaluate later closes against the line’s value at their own time.
If your low-selection rule changes, label a new definition. A later rise above the declared invalidation reference can oppose the reversal premise.
The quoted rules are illustrative research specifications. Parameters are not recommendations and have not been presented as profitable backtest results.
What can this cost?
Projected distances are not guaranteed exits. A sloped reference also changes apparent entry distance and must be included consistently in testing.
How the idea can fail.
The right-shoulder outline can be present while price never crosses the declared neckline. Recognition alone cannot be recorded as a completed short signal.
Practical habit
Write the two time–price coordinates next to the line. Another person should be able to calculate the same reference.
Go one level deeper
Distinguish the eventual timestamp of a swing from the time its confirmation rule made it knowable.
Check your understanding
The line is 100 at t2 and 101 at t4. At t6, close is 102.30. Is it below the line?
Further reading & boundaries
These examples are original educational exercises. General background: CME Group: position sizing; Fidelity: technical analysis. Neither endorses these example rules. No hypothetical result establishes future profitability.
Editorial revision: 13 October 2026 · Synthetic data · Educational use