An example of Inverted Head and Shoulders pattern

Inverted head and shoulders pattern is very common reversal pattern. After a downside or a range bound structure this pattern can be fruitful. Basically the targets are same as the depth of the Head. Head is the middle portion followed by a shoulder on each side. There is a neckline connecting all the points. Here the neckline comes around 180. The stock made a low around 50-60 so to calculate the target we'll do (180-60)=120 points. And that comes around 180+120=300. Lets hope that this setup works. It may take some time though. For Stop loss one can place it below swing low.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.