Inverted Head and Shoulders Chart Pattern

This name speaks for itself. It's basically a head and shoulders formation, but in reverse. It forms a valley (shoulder) followed by a lower valley (head) and then another valley higher than the previous (shoulder). These formations occur after an extended downtrend.

Here you can see that this pattern is equal to a head and shoulders pattern, but turned upside down. With this formation, place a long-term operation above the support. Our market is calculated as in the pattern of the head and shoulders, measuring the distance between the head and the support, which is about what price will move after breaking the same.

You can see how the price went up after breaking support. We know you're thinking "the price will continue moving even after reaching the market."

The answer is: Do not be greedy!

If you reached the market looking for, feel happy with your winnings. However, there are some strategies where you can save some of the gains and maintain your open trades if the price continued to move in the desired direction. Our Forex course, you'll soon learn about them.