THE INVERSE HEAD&SHOULDERS CHART PATTERN
The inverted head&shoulder pattern is a more reliable chart pattern used by traders to identify and analyse next price trend.
Patterns with down-sloping necklines(the neckline is clearly identified on the chart) perform better.A higher left shoulder valley when compared to the right shoulder valley results in a larger rise postbreakout, but the difference is small.
previous market performance:
Break even failure rate: 3%
Average rise: 38%
Throwback rate: 45%
Percentage meeting price target: 74%
Traders Guidelines(always remember thses guidelines):
Price trend Downward leading to the pattern
A 3-valley pattern with the middle valley below the others. The pattern should look like an inverted person's head and shoulders, proportional, and not lopsided.
SThe two shoulders should bottom near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow).
Neckline Joins the two armpits.
The pattern confirms as a valid one when price closes above a down-sloping neckline or above the right armpit when the neckline slopes upward.
Price must have something to reverse, so if the decline leading to the pattern is small, expect a small rise and lastly Wait for confirmation before placing a trade.
SELL:0.00007434sats up to 0.00008067sats
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.