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 and Shoulders Chart Pattern is a reversal head and shoulders chart pattern that forms after an extended Gold Trading downward trend. It resembles an upside-down head shoulders.

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

To open a buy gold trade buyers place their buy stop xauusd trade orders just above the neckline.

Summary:

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

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