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1. Also called a higher swing low trend reversal, an Inverted Head and Shoulders
pattern is formed when a security within a downtrend traces a higher swing low than
the previous one.
2. The Inverted Head and Shoulders pattern is powerful because the sentiment
that was formerly producing the downtrend is now possibly shifting and selling pressure
is decreasing.
3. Inverted Head and Shoulders patterns can be stronger when the price breaks
above the “neckline”, which is a straight line is connecting the swing
highs that created the inverse shoulders.
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