Introduction to Candlestick Patterns and Chart Patterns

T he head and shoulder pattern is often inverted, which we also call the I nverted head and shoulder pattern . This structure appears to be formed mainly in a downward trend. From this, it can be said that the bears are tired now and the bulls have jumped to buy. The left shoulder was formed first due to the bullish momentum in the inverted head and shoulder pattern. But the downward momentum comes back and the left shoulder is formed completely. When the left shoulder is formed, the price creates a new low but with a lower volume than the left shoulder. When the left shoulder is formed, the price gives a new low and the bulls start a sharp drag and a good pullback comes which goes up to the neckline. Which we can call the Head. Now due to limited supply, the price goes down a bit and takes support on or near the neckline. We can call this Right shoulder. The right inverted shoulder is formed and the price starts rising again. When the right inverted shoulder is formed, it increases