Bank of Baroda

Decoding Angled Necklines in Inverted Head & Shoulders

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This chart showcases a perfect example of how inverted head and shoulders patterns don't always follow textbook formations. Points A and B represent the shoulders, while C forms the deeper head—but notice the crucial difference: the neckline (red line) is tilted rather than horizontal.

Pattern Education Points:
- Traditional vs Reality: While many educational materials show horizontal necklines, real market patterns frequently display angled necklines, which are equally valid
-Shoulder Structure: The left shoulder (A) and right shoulder (B) don't need perfect symmetry—market patterns reflect actual supply and demand dynamics, not geometric precision

Market Structures:
- Before A, There was serious consolidation and then a Lower Low formation in the markets -> showcasing a dry volume dip and significant correction ( marking C ) as well as a result .
- Accompanied by a decent V shape recovery, tilted neckline is been touched again - showcasing market multi structure patterns are really important and there identification can lead to a decent trade idea
- later the next shoulder ( B ) gives solid consolidation but this time the dip is not solid unlike the normal Inverted HnS which makes the 2nd dip equal to the 1st shoulder dip here its a solid consolidation with small dip and a marubozu green candle after that .

Disclaimer: This content is for educational purposes and not financial advice. Always do your own research before making trading decisions.

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