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mp3bu

In the CFAI text book under the topic, Setting price targets with head and shoulders pattern (Reading 12, page 621), I came accross this line;
‘If the preceding rally started at a price higher than the neckline, the correction is unlikely to bring the price lower than the price level at the start of the rally’
Can someone please help me understand this line???

genuinecfa

Thanks Henda. Thats really helpful.