How Do You Trade Inverse Head & Shoulders Chart Pattern?

How to Trade the Inverse Head & Shoulders Pattern

Inverse Head & shoulders Trading Pattern

Inverse Head & Shoulders Pattern is a reversal head & shoulders chart pattern that is formed after an extended downward trend. It resembles an upside-down head shoulders.

Inverse Head & Shoulders Chart Pattern is considered complete once price penetrates above neck line, which is plotted by joining these two peaks between the reverse shoulders pattern.

To open a buy trade buyers place their buy stop xauusd trade orders just above neckline.

Summary:

• Inverse Head & Shoulders Chart pattern forms after an extended move downwards
• Inverse Head & Shoulders Pattern indicates that there will be a reversal in the market
• Inverse Head & Shoulders Pattern formation resembles upside down, thus its name Inverse Head & Shoulders Chart Pattern.
• We buy when price breaks-out above neck line: as described on the example shown & described below.

Trade Inverse Head & Shoulders Chart Pattern? - Analysis of Reverse Head & Shoulders Patterns?

Example of Inverse Head & Shoulders Pattern on a Chart

How to Trade the Inverse Head & Shoulders Pattern - How to Analyze Inverse Head & Shoulders Chart Patterns