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SoFi Technologies Inverse Head and Shoulders Breakout ~$12 PTThe Inverse Head and Shoulders pattern is a classic technical analysis pattern that signals a reversal in trend from bearish to bullish. It is the exact opposite of the Head and Shoulders pattern which indicates a bearish trend reversal. Here's a detailed description of the Inverse Head and Shoulders pattern with key indicators: 1. Formation : This pattern is characterized by three consecutive troughs with the middle trough being the deepest (the "head") and the two outside troughs (the "shoulders") being shallower. Ideally, the two shoulders should be roughly the same distance from the head and there should be a noticeable downward trend in progress. 2. Neckline : The pattern is framed by a "neckline" drawn by connecting the high points of the two troughs. The neckline serves as the level of resistance that price must break through for the pattern to be considered complete. 3. Volume : Volume plays a crucial role in identifying this pattern. During the formation of the pattern, volume tends to be higher during the descent into the left shoulder, lower during the formation of the head, and increase again during the rise of the right shoulder. A noticeable increase in volume on the break above the neckline confirms the pattern. 4. Relative Strength Index (RSI) : The RSI is often used to confirm the pattern. The RSI, which ranges from 0 to 100, is a momentum oscillator that measures the speed and change of price movements. During the formation of the pattern, the RSI might become oversold (below 30) as the head forms and then start to rise as the right shoulder develops. A break above the neckline often coincides with the RSI climbing above 50, which is a bullish signal. 5. Duration : The formation of an Inverse Head and Shoulders pattern can take several weeks to several months. The longer the pattern takes to develop, the more significant the potential price reversal. 6. Conclusion and Breakout : The pattern is confirmed when the price breaks above the neckline, preferably on higher volume. After the breakout, the price may retest the neckline (now acting as a support level), before continuing its upward move. This is referred to as a "throwback". 7. Price Target : The projected price target is found by measuring the distance from the neckline to the bottom of the head. This distance is then projected upwards from the breakout point at the neckline to provide a price target. The Inverse Head and Shoulders pattern, while a powerful tool, is not foolproof. It should be used in conjunction with other technical indicators to validate and confirm signals, reducing the risk of false positives. Additionally, market fundamentals should not be overlooked while considering potential trades based on this pattern.
NASDAQ:SOFILong
by Diegolas_
2
GE Weekly View - Potential Inverse Head and Shouldersmost of my notes and thoughts are on the chart - 3 major moves to the down side, with what appears to be a iHnS potential taking shape --Need to see much more volume (buying) to confirm with better probability that this pattern pans out ---low volume with price increase would indicate weakness imho - IF, this were a legitimate inverse HnS and the pattern completed: --Target of ~$300.00 as indicated by blue horizontal trendline --*a more conservative target of ~$195 could be made and the higher target could fail due to resistance at yellow trendline **(marked by the yellow X and the 2nd yellow X near $195) *Note the time frame of this trade....several years to see in totality. This is something to just keep an eye on for longer term investment this is not financial advice, simply notes on what i see and should be used for observation/education only
NYSE:GELong
by astoinis
CRUDEHello and welcome to this analysis UKOIL formed a Bullish Harmonic Gartley near $83.50 in weekly time frame and reversed from there. In the last few weeks after its 1st round of reversal from the Gartley PRZ it has formed a Cup pattern (rounding bottom) in daily time frame indicating a breakout above $98.50 for $106. While CRUDE OIL at MCX has formed an Inverse Head & Shoulder pattern in daily time frame indicating a breakout above 7700 for 8200 and 8800. The movement in MCX Crude will largely be impacted by US$-INR also, keep in mind that factor also.
TVC:UKOILLong
by Dinesh_C_Nagpal
Inverse Head and Shoulders"What Is the Inverse Head and Shoulders? An inverse head and shoulders, also called a "head and shoulders bottom", is similar to the standard head and shoulders pattern, but inverted: with the head and shoulders top used to predict reversals in downtrends. This pattern is identified when the price action of a security meets the following characteristics: the price falls to a trough and then rises; the price falls below the former trough and then rises again; finally, the price falls again but not as far as the second trough. Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs. Image 1 Image by Sabrina Jiang © Investopedia 2020 KEY TAKEAWAYS An inverse head and shoulders is similar to the standard head and shoulders pattern, but inverted. It may be used to predict reversals in downtrends An inverse head and shoulders pattern, upon completion, signals a bull market Investors typically enter into a long position when the price rises above the resistance of the neckline. What Does an Inverse Head and Shoulders Tell You? Investors typically enter into a long position when the price rises above the resistance of the neckline. The first and third trough are considered shoulders and the second peak forms the head. A move above the resistance, also known as the neckline, is used as a signal of a sharp move higher. Many traders watch for a large spike in volume to confirm the validity of the breakout. This pattern is the opposite of the popular head and shoulders pattern but is used to predict shifts in a downtrend rather than an uptrend. A suitable profit target can be ascertained by measuring the distance between the bottom of the head and the neckline of the pattern and using that same distance to project how far the price may move in the direction of the breakout. For example, if the distance between the head and neckline is ten points, the profit target is set ten points above the pattern's neckline. An aggressive stop-loss order can be placed below the breakout price bar or candle. Alternatively, a conservative stop-loss order can be placed below the right shoulder of the inverse head and shoulders pattern. Identifying the Inverse Head and Shoulders An inverse head and shoulders pattern is comprised of three component parts: After long bearish trends, the price falls to a trough and subsequently rises to form a peak. The price falls again to form a second trough substantially below the initial low and rises yet again. The price falls for a third time, but only to the level of the first trough, before rising once more and reversing the trend. Trading an Inverse Head and Shoulders Aggressively A buy stop order can be placed just above the neckline of the inverse head and shoulders pattern. This ensures the investor enters on the first break of the neckline, catching upward momentum. Disadvantages of this strategy include the possibility of a false breakout and higher slippage in relation to order execution. Trading an Inverse Head and Shoulders Conservatively An investor can wait for the price to close above the neckline; this is effectively waiting for confirmation that the breakout is valid. Using this strategy, an investor can enter on the first close above the neckline. Alternatively, a limit order can be placed at or just below the broken neckline, attempting to get an execution on a retrace in price. Waiting for a retrace is likely to result in less slippage; however, there is the possibility of missing the trade if a pullback does not occur. The Difference Between an Inverse Head and Shoulders and a Head and Shoulders The opposite of an inverse head and shoulders chart is the standard head and shoulders, used to predict reversals in up-trends. This pattern is identified when the price action of a security meets the following characteristics: the price rises to a peak and then falls; the price rises above the former peak and then falls again; finally, the price rises again but not as far as the second peak. Once the final peak is made, the price heads downward, toward the resistance found near the bottom of the previous peaks. Limitations of an Inverse Head and Shoulders Like all charting patterns, the ups and downs of the head and shoulders pattern tell a very specific story about the battle being waged between bulls and bears. The initial decline and subsequent peak represent the building momentum of the prior bearish trend into the first shoulder portion. Wanting to sustain the downward movement as long as possible, bears try to push the price back down past the initial trough after the shoulder to reach a new low (the head). At this point, it is still possible that bears could reinstate their market dominance and continue the downward trend. However, once the price rises a second time and reaches a point above the initial peak, it is clear that bulls are gaining ground. Bears try one more time to push the price downward but succeed only in hitting the lesser lower reached in the initial trough. This failure to surpass the lowest low signals the bears' defeat and bulls take over, driving the price upward and completing the reversal. What Does an Inverse Head and Shoulders Indicate? The inverse head and shoulders chart is thought to predict a bearish-to-bullish trend reversal and signals that a downward trend is nearing its end. Investors consider it to be among the most reliable trend reversal patterns. How Should One Use the Inverse Head and Shoulders Pattern? The most common entry point is a breakout of the neckline, with a stop below (market bottom) or above (market top) the right shoulder. The profit target is the difference between the high and low with the pattern added (market bottom) or subtracted (market top) from the breakout price. The system is not perfect, but it does provide a method of trading the markets based on logical price movements. What Is the Neckline in an Inverse Head and Shoulders? The neckline is the level of support used to determine where to place orders. To identify the neckline, first locate the left shoulder, head, and right shoulder on the chart. In the inverse head and shoulders pattern (market bottom), we connect the high after the left shoulder with the high created after the head." By JAMES CHEN of Investopedia.com Updated June 08, 2022 Reviewed by CHARLES POTTERS Fact checked by RYAN EICHLER
FX:NAS100Long
by MikeJoseph
quick sketch of psychopathythe only way bitty can feel anything anymore is by messing with us...i would not be surprised if she does that here between the ihs arc neckline (2pi arc between recent tops, see previous chart) and the ihs LINE neckline...a retest if you will (convinced the space between square/line and circle/arc has some meaning on these charts (which are just maps of emotion, something the geo gurus have gotten me thinking about lately)...ideal/avg vs real or something) gut says double bottom range around here (slightly lower low like 16kish wouldn't bother me) for a few more months...but extra NFA. i'm basing that on my crab rockefeller idea (spirals geo noob stuff) stay safe out there fresh air, sunshine, move your body, tell your family and friends how lucky you are to have ppl who love you in spite of (because of?) your degeneracy i'm not letting bitty hijack my summer!
INDEX:BTCUSD
by FinanciallyCodependently
2
flirting at the neckline (bullas tp)lotta bear confluence here...which is my local bias. i do think recent low was a longer-term bottom we will range at for a lil while but nfa... resistance is 2pi arc of the smaller circle you see (radius = between those two tops) bearshark zone as well (included some bull harmonic possibilities) ihs neckline ihs and hs "fakeouts" are actually just PA following a curved neckline imo (just like irl :-) ) ...trendlines are not straight NFA...expect the unexpected! a break here would be bullish to mid-twenties imo (w/successful retest)...lots of alts looking juicy if that happens
INDEX:BTCUSD
by FinanciallyCodependently
BTCUSDT Prints Another IH&S PatternHey everyone I want to make this short and sweet because I want you to see this but I do not have time today to put out the companion video with it, but I will either tonight or tomorrow. I wanted you to see how this pattern is almost the same inverse head and shoulders print as before, however the last time, the pattern failed and fell into a choppy consolidation. My local target for BTC is around 23000. I will talk more about this and show you some juicy charts in the video I am making. Thanks again, and I apologize for having to be short. This has been a crazy week of de-risking all across the board.
by mysticalwalrus
3
ETHUSD | Inverted H+S Forming? | Volume MiddlingDespite the formation appearing to be an inverted head and shoulders complex, I remain a little bearish on the short term with the prices struggling to get above 3930 consistently (let alone 3950+) and with the volume being so middling. Look for well above avg volume on breakout upon potential pattern completion. Keep in mind almost in uncharted waters so here there be dragons! Only put up what you can risk. Even if the patterns play out don't FOMO in. The volume for that last relative high was mostly FOMOing buyers (hence the LUS on the candle). Possible near resistance pull-backs identified but we could go lower. I am still long and believe we will see a break toward ATH sooner (next couple of days or so) or later (next couple of weeks). If not please see the other idea for musings as to price targets for long(er) entries. Could be as low as 3000-3200, but 3600-3800 more likely given recent falls to major supports. This is not financial advice. This is my opinion. Good luck.
COINBASE:ETHUSDLong
by XanaduRising