Indices Price Breakout after Inverse Head and Shoulders Pattern

Inverse Head and shoulders Indices Chart Pattern

Inverse Head and Shoulders Indices Chart Pattern is a reversal head and shoulders stock indices chart pattern that forms after an extended Indices Trading downward trend. It resembles an upside-down head shoulders.

Inverse Head and Shoulders Indices Chart Pattern is considered complete once stock indices price penetrates above the neckline, which is drawn by joining the two peaks between the reverse shoulders.

Traders open buy stock indices trades using this reversal trading signal once the stock indices price closes above the neckline.

Summary:

• Inverse Head and Shoulders Indices Chart Pattern forms after an extended move downwards
• Inverse Head and Shoulders Indices Chart Pattern indicates that there will be a reversal in the stock indices trading market
• Inverse Head and Shoulders Indices Chart Pattern formation resembles is upside-down, thus its name Inverse Head and Shoulders Indices Chart Pattern.
• We buy when stock indices price breaks above the neckline; as explained on the stock indices trading example explained and illustrated below.

What Happens to Indices Price Action After a Reverse Head and Shoulders Indices Chart Pattern?

Example of Inverse Head and Shoulders Indices Chart Pattern on a Indices Chart

Indices Price Breakout after Inverse Head and Shoulders Pattern