What is the inverse head and shoulder pattern on USD/Zar forex?

The Inverse Head and Shoulder pattern on the USD/ZAR forex pair above shows an asymmetrical structure which is quite common in most formations. The neckline is slightly skewed, however still maintaining the integrity of the pattern. The long entry level is highlighted by the neckline break or the price candle close above the neckline.

What is the opposite of the head and Shoulders pattern?

The opposite of the Head and Shoulders Pattern is the Inverse Head and Shoulders. It appears in a downtrend and signals a reversal from the bearish pattern to a bullish pattern. Sometimes when the Head and Shoulders Pattern is present, the price breaks through the resistance level, indicating a bearish pattern, it is known as a double top.

How reliable is a head and shoulders chart?

The head and shoulders chart is said to depict a bullish-to-bearish trend reversal and signals that an upward trend is nearing its end. Investors consider it to be one of the most reliable trend reversal patterns. How Reliable Is a Head and Shoulders Pattern?

What is a head and shoulders chart pattern?

Often considered the most steadfast of all major reversal patterns, the Head and Shoulders chart pattern is employed by novice and experience traders alike to speculate on both forex and stock markets. The benefit of this chart pattern is defined areas to set risk levels and profit targets.