| |
|
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. |
|
|
|
|
|
