feel free to call us +919500077790 info@eqsis.com
Tagged: INVERTED HEAD AND SHOULDER
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
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
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.
EQSIS, A Stock Market Research Firm
Knowledge is Power. Here you may start from basics, get support while practicing and evolve as active analyst, later you can become a pro