How To Trade Inverted Head & Shoulders: TSLA
@ZEROHERO:
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. 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. 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 sh