Based on this article: https://www.babypips.com/learn/forex/dou...
Chart we're using is the infamous Bitcoin of late 2017.
- Neckline is the resting place between the first top, and the second, failed 'run up'
- When the 2nd run up fails, that indicates that buyers are exhausted
- Notice the indecision , near the neckline and right before the drop!
- Distance between neckline and top = good basis for the size of the first big drop , to calculate your short