FTB-C000647 / Formula component

Neckline Break

Neckline Break is the first finalized close strictly below a top-pattern neckline after candidate availability.

Also known asstrict neckline cross

Advanced Formula defined 1 linked topicEvidence-reviewed

Definitions

In plain terms

A close exactly on the neckline is not enough; the close must cross beyond it.

Technical

For a top, confirmation occurs when close_t < N_t within the inclusive deadline and after the final structural pivot is knowable.

Scope

A wick through the line without a finalized close does not satisfy this close-only contract.

Formula

confirm when finalized close_t is strictly below N_t
LaTeX: C_t<N_t
SymbolMeaningUnit
C_tfinalized closeprice
N_tnecklineprice

Output unit: boolean event

Examples

  • A reviewer computes Neckline Break on a deterministic close fixture and checks pivot timing, threshold equality, neckline behavior, and rejection diagnostics before publication.

Common misconceptions

  • A wick through the line without a finalized close does not satisfy this close-only contract.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Evidence and governance

  1. Pine Script repainting concepts TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: Platform display behavior does not establish financial usefulness or predictive value.

  2. Foundations of Technical Analysis: Computational Algorithms, Statistical Inference, and Empirical Implementation Lo, Mamaysky, and Wang · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: The paper's smoothing, sample, and empirical design are not copied into this package and do not validate its thresholds.

  3. scipy.signal.find_peaks SciPy · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: This retrospective signal function is not itself a causal OHLC pivot detector.

  4. Pine Script pivot techniques TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: The package freezes its own equality, separation, and OHLC policies rather than claiming one universal pivot definition.

  5. Zig Zag indicator QuantConnect · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: This package selects a close-only percentage-reversal variant and documents the difference.

  6. LEAN ZigZag source QuantConnect · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: A maintained implementation is evidence for one convention, not a universal market rule.

Reviewed by
fintech-builder-batch-012
Last reviewed
2026-08-10
Next review
2027-08-10
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.

Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.