As seen Punjab Chem has formed an inverse head and shoulder pattern on the daily charts .
Aggressive traders can enter (closing basis) on the breakout of the neckline with volumes.
Conservative traders can enter when price retests the breakout level.
Can we consider one year patter as valid Inverse Head-and-Shoulders Bottoms? Thomas N. Bulkowski in his famous book Encyclopedia of Chart Patterns has mentioned Median and Average length of this pattern 55 and 70 days respectively.
Although I am not sure about the valid Head-and-Shoulders Bottoms pattern considering the long size but I do agree of going long on the stock. IT seems to me a Flag like pattern.
Thanking you for your efforts.
Praveenji you have a very valid point. This pattern here is not an ideal pattern in terms of time as you mentioned it, neither the left nor the right shoulder is similar in height and width. But If I just break this pattern a bit and see why it should work, I see it as shift from the downtrend to uptrend, where the head is the low and the right shoulder is higher low and our entry would be the break of the previous high that too subject to good volumes. So, what we are doing here is, we are just following the price action. So, in my opinion even if it takes longer to form this pattern and if it gives a breakout with good volumes I would be more convinced trading it. Thanks, for your views.