How Do I Trade Inverse Head & Shoulders Chart Pattern? - Reverse Head & Shoulders Chart Pattern

How to Trade the Inverse Head & Shoulders Chart Pattern

Inverse Head & Shoulders Chart Pattern

Inverse Head & Shoulders Pattern is a reversal head & shoulders pattern which forms after an extended downwards trend. It resembles an up-side down head shoulders.

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

To open a buy trade buyers place their buy stop orders just above the neck line.

Summary:

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

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

Example of Inverse Head & Shoulders Chart Pattern on a Chart

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