The completion of an inverse head and shoulders pattern indicates a bull market. When the price rises above the neckline's resistance, investors often take a long position.
An example of a bullish reversal pattern is the Inverse Head-And-Shoulder pattern. This indicates that the price action and trend prior to the formation of this pattern were negative. At the bottom of a market move, the inverse head-and-shoulder pattern frequently appears.
Take a vertical measurement from your head to your neckline.
Calculate the distance between the breakout price and the breakout point (when the price first breaks the neckline after the right shoulder forms).
One of the most dependable trend reversal patterns is the head and shoulders pattern. It's one of numerous top patterns that can indicate an upward trend's end with varied degrees of accuracy.
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