Posts Tagged ‘Reverse Head and shoulders’

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Reverse Head and Shoulders

The Reverse Head and Shoulders pattern is the opposite formation of the Head and Shoulders and is seen in a downtrend. This is a reversal pattern. It is identified by Price dropping to form the left shoulder, the neckline, a new low forming the head, it rises again to form the right neckline and the right shoulder. It eventually breaks through the right neckline. Traders typically make an entry on the break of the right neckline anticipating prices will move higher.

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