What Does Inverse Head and Shoulders Chart Pattern Mean?

Inverse Head and shoulders XAUUSD Trading Pattern

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

Inverse Head & Shoulders Pattern is considered complete once xauusd price penetrates above neckline, which is drawn by joining these 2 peaks between the reverse shoulders pattern.

Traders open buy xauusd trades using this reversal trading signal once the xauusd price closes above neck line.

Summary:

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

What Does Inverse Head and Shoulders Chart Pattern Mean? - What Happens to Gold Price Action After a Reverse Head and Shoulders Pattern?

Examples of Inverse Head and Shoulders Pattern on a Gold Chart

How to Analyze the Inverse Head and Shoulders Chart Pattern