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Tagged: INVERTED HEAD AND SHOULDER
CONDITIONS :
It is an accumulating pattern. Prior downfall can confirm the trend reversal.
The pattern which forms three bottom position, in this the middle bottom position is much lower then other bottom positions, so its looks like inverted L.Shoulder| Head |R.shoulder by seeing this its called as inverted head and shoulders pattern.
1. The inverted head and shoulder should be formed within the period of 2 to 3 months.
2. The volume must be high at L.Shoulder portion.
3. The price rises from the R.Shoulder position and crosses the neck line which is the two top position to form the inverted HEAD.
Then, these are their conditions to determine the bullish trend, this shows the stronger hand is moved inside in short time of the stock.
Inverted head and shoulder is a pattern in which head should be the lowest value of the trend and shoulder should be little higher than the head.
Conditions:
1. Minimum duration of each pattern should be 1 month.
2. Left shoulder should have high volume and right shoulder should have low volume.
3. Long position can be considered while breaking down the neck line.
It is similar to the head and shoulder pattern, but should look like upside down. The head should be below two bottoms. Left Shoulder | Head | Right shoulder.
This patterns generally defines the bullish trend. Those conditions are
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