Educational Zone

Inverted Head and Shoulders pattern

The head and shoulders bottom or inverted head and shoulders after a down trend is an inverted image of head and shoulders top ,the key feature of this pattern is a three well defined bottoms ,the middle bottom is lower than other two bottoms, this middle bottom called a (Head) , the bottom before the head called a (Left shoulder), the bottom after the head called a (Right shoulder).

Price target

Calculating the price target, is the height of the shape or formation , by calculating the vertical distance from the head to the neckline , and put this distance up from the stage of penetration up to reach the target price .