How Do I Trade Inverse Head and Shoulders Chart Pattern?

How to Trade the Inverse Head and Shoulders Chart Pattern

Inverse Head & shoulders XAUUSD Trading Pattern

Inverse Head & Shoulders Pattern is a reversal head & shoulders chart pattern that is formed after an extended Gold downward trend. It resembles an upside down head shoulders.

Inverse Head & Shoulders Chart Pattern is considered complete once xauusd price penetrates above neckline, which is plotted by joining these 2 peaks between the reverse shoulders pattern.

To open a buy gold trade buyers place their buy stop xauusd trade orders just above neck line.

Summary:

• Inverse Head and Shoulders Gold Chart pattern forms after an extended move downwards
• Inverse Head and Shoulders Pattern indicates that there will be a reversal in the xauusd market
• Inverse Head and Shoulders Pattern formation resembles upside down, thus its name Inverse Head & Shoulders Chart Pattern.
• We buy when price breaks-out above neck line: as described on the xauusd trading example illustrated and explained below.

Gold Trade Inverse Head and Shoulders Chart Pattern? - Technical Analysis of Reverse Head and Shoulders Chart Patterns?

Example of Inverse Head & Shoulders Chart Pattern on a Gold Chart

How to Trade the Inverse Head and Shoulders Pattern - How to Analyze Inverse Head and Shoulders Chart Patterns