Wow! Complex Invert Head & Shoulder inside an Isosceles TriangleIn a previous analysis (Jan 19), I had already identified this possible complex Inverted Head & Shoulders !
It is composed of a double head and an inner small inverted H & S in the right shoulder
as explained on the link that I had already given in comment of my previous idea.
Above all, everything seems to fit inside an isosceles triangle!
This pattern is composed of two straight lines, one bullish and the other bearish.
The two lines are roughly equivalent, the triangle to be valid must have at least 4 impacts, two on each line, which is the case here.
This kind of pattern takes shape after a strong upward or downward movement. In our case, it is due to the decline of the end of 2019!
During this period, stakeholders are wondering what trend to give the market.
The main purpose of this triangle is to be able to give a precise objective of the movement at the exit.
Inside the triangle it's very difficult to guess the tendency to exit, but when the output is done you can easily give a goal.
To be valid, the exit in this kind of configuration must be done before the last quarter of the triangle,
if the exit is done after, the figure is no more valid and the given signals will be false or unreliable!!
The volumes when entering the triangle must be rising, inside the triangle they must be packed, which is the case here!
... until the exit which must be done with a maximum of volumes. The larger the volumes, the more likely the goal will be realized.
The objective can be calculated in two ways, the first is to postpone the height of the triangle taken at the second impact (arrow inside the triangle), the exit point of the value of the figure (arrow at break of the triangle ). This gives a precise objective of the increase.
The other method is to draw a parallel, to the right that has not been broken, passing through the vertex of the triangle.
This method is more approximate, but it gives an idea of the objective.
There are limitations, the goal must be achieved before the two straight components of the triangle meet.
If this is not the case the objective can be achieved but nothing guarantees it!
