Viewing 3 posts - 276 through 278 (of 278 total)
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  • #84358
    KAVITHA SUNDER
    Participant
    Rank: Level 3

    Inverted Head and shoulder is pattern formed after a down trend.

    Conditions to determine the bullish trend :

    Left shoulder ->: Price declines and moves higher.

    Head -> another Decline occurs to a lower level.

    Right shoulder -> Price then moves higher and moves back lower, but not as low as the head.

    A trade can be initiated after the pattern is complete and a long position can be created once the right shoulder moves upward breaking the neck line with significant volume.

    *Note : Formations are rarely perfect, i.e, there may be some noise between the respective shoulders and head.

    The inverted head and shoulder pattern is a accumulation pattern.

    – Should have significant rally before the trend.

    -period of the trend is 3 months

    – left shoulder should have high volume

    -head should be high

    right shoulder should have no significance in volume

    long position can be made after breakout

    #84487
    Padmanabha
    Participant
    Rank: Level 2

    The inverted head and shoulder pattern is a accumulation pattern. Should have significant rally before the trend. period of the trend is 3 months, left shoulder should have high volume, head should be high

    long position can be made after breakout

    #160135
    Divya E R
    Participant
    Rank: Level 3

    An uptrend that is interrupted by a head and shoulders top pattern may experience a trend reversal, resulting in a downtrend. Conversely, a downtrend that results in a head and shoulders bottom (or an inverse head and shoulders) will likely experience a trend reversal to the upside. Investors typically enter into a long position when the price rises above the resistance of the neckline.

    Left shoulder: Price declines followed by a price bottom, followed by an increase.
    Head: Price declines again forming a lower bottom.
    Right shoulder: Price increases once again, then declines to form the right bottom.

Viewing 3 posts - 276 through 278 (of 278 total)
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