Aave
2025-01-14
Category: None

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Inverted head and shoulders is a reversal pattern formed by three consecutive lows and two intermediate highs. The first and third lows are called shoulders. They are located approximately at the same level above the second – the head. Also, important is the line drawn along the intermediate highs – the neckline. The pattern is considered completed only when the price, having formed the right shoulder, rises above the neckline. It is expected that further price movement up will be approximately equal to the height of the head.