Inverted Head & Shoulder Patterns can be profitable (+145 pips)

This pattern has four main sequential steps for it to complete itself and signal
the reversal:
1. The left shoulder is formed when the currency pair reaches a new high and then retraces slightly to a new low.
2. The formation of the head occurs when the currency pair reaches a higher high then falls back near the low that was formed as part of the left shoulder.
3. The right shoulder is formed with a high that is slightly lower than the high formed in the head but is again followed by a fall back to the lows of the left shoulder.
4. The price then breaks the neckline/trend-line. In other words, price falls below support going on to break the level of the three lows created by the previous head and left shoulder.

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02:19:27 ( UTC )
Thu Jan 2, 2020