** Inverted Head and Shoulders-
The inverse head and shoulders occurs when a downtrend reverses into an uptrend, and is basically the head and shoulders pattern we have just analyzed turned H & S pattern . As such, it’s really just a gradual change in the direction of the trend, marked by a penetrated trend-line and weakening of the current trend.
** The Complex Inverted Head and Shoulders _
Of course, everything is not straightforward, particularly in the trading world, and you won’t always get a perfect copybook head and shoulders pattern. One variation that you can find is called the ‘Complex Head and Shoulders Pattern’, and this is a more complicated version which includes extra parts. The extra parts include a double head or double shoulder – basically the trend is taking longer to turn from one direction to the other. This pattern has the same forecasting ability as the normal pattern, and you can run through the same principles to see why. This is not a very common occurrence.
Because the head and shoulders is so widely known, you may find that other traders beat you to the punch in trading the reversal, and you lose some of the move. For this reason, you may find traders that don’t wait for the confirmation of the pattern before they enter the trade. For instance, some will anticipate the completion while the right shoulder is still in formation, and start entering some trades.
In this stock scenario Complex Inverted Head & Shoulder breakout already happened with high volume . so that the basis of this pattern i am bullish on Sterlite Tech limited.
Kindly Let us Know if you have any question .
Thank you
The inverse head and shoulders occurs when a downtrend reverses into an uptrend, and is basically the head and shoulders pattern we have just analyzed turned H & S pattern . As such, it’s really just a gradual change in the direction of the trend, marked by a penetrated trend-line and weakening of the current trend.
** The Complex Inverted Head and Shoulders _
Of course, everything is not straightforward, particularly in the trading world, and you won’t always get a perfect copybook head and shoulders pattern. One variation that you can find is called the ‘Complex Head and Shoulders Pattern’, and this is a more complicated version which includes extra parts. The extra parts include a double head or double shoulder – basically the trend is taking longer to turn from one direction to the other. This pattern has the same forecasting ability as the normal pattern, and you can run through the same principles to see why. This is not a very common occurrence.
Because the head and shoulders is so widely known, you may find that other traders beat you to the punch in trading the reversal, and you lose some of the move. For this reason, you may find traders that don’t wait for the confirmation of the pattern before they enter the trade. For instance, some will anticipate the completion while the right shoulder is still in formation, and start entering some trades.
In this stock scenario Complex Inverted Head & Shoulder breakout already happened with high volume . so that the basis of this pattern i am bullish on Sterlite Tech limited.
Kindly Let us Know if you have any question .
Thank you