INVERSE HEAD & SHOULDER : KEY POINTS
3 Component parts of Inverse H&S are:
After long bearish trends, the price falls to a trough and subsequently rises to form a peak.
The price falls again to form a second trough substantially below the initial low and rises yet again.
The price falls for a third time, but only to the level of the first trough, before rising once more and reversing the trend.
As long as the down-trend before Inverse H&S, BO would be large and upside would be stable...
- An inverse head and shoulders pattern, upon completion, signals a bull market
One should enter into a long position when the price rises above the resistance of the neckline.
3 Component parts of Inverse H&S are:
After long bearish trends, the price falls to a trough and subsequently rises to form a peak.
The price falls again to form a second trough substantially below the initial low and rises yet again.
The price falls for a third time, but only to the level of the first trough, before rising once more and reversing the trend.
As long as the down-trend before Inverse H&S, BO would be large and upside would be stable...