The Inverse Head and Shoulders pattern is a chart pattern that has fooled many traders (I’ll explain why shortly).
However, if traded correctly, it allows you to identify high probability breakout trades, catch the start of a new trend, and even “predict” market bottoms ahead of time.
This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has close to 800 followers.
Want to learn more?
Then read on…
What is an Inverse Head and Shoulders pattern?
The Inverse Head and Shoulders is a bullish chart pattern that signals the buyers are in control.
Here’s how it looks like…
Now, let’s find out what the Inverse Head and Shoulders pattern really means…
Left Shoulder – This is a pullback against the downtrend because of profit taking or eager buyers stepping into the market.
Head – The sellers are still...