What Does Inverse Head and Shoulders Chart Pattern Mean?

Inverse Head & shoulders Gold Chart Pattern

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

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

Traders open buy gold trades using this reversal trading signal once the gold trading price closes above neckline.

Summary:

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

What Does Inverse Head and Shoulders Chart Pattern Mean? - What Happens to XAUUSD Price Action After a Reverse Head & Shoulders Chart Pattern in XAUUSD?

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

How to Analyze the Inverse Head and Shoulders Chart Pattern