How to Trade Inverse Head and Shoulders Chart Pattern in XAUUSD

How to Trade the Inverse Head and Shoulders Chart Pattern

Inverse Head & shoulders Gold Chart Pattern

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

Inverse Head & Shoulders Pattern is considered complete once gold price penetrates above neck-line, which is plotted by joining these 2 peaks between the reverse shoulders pattern.

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

Summary:

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

XAUUSD Trade Inverse Head and Shoulders Chart Pattern in XAUUSD?

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

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