This is how Investopedia.com describes the Inverse Head and Shoulder pattern -
Inverse Head and Shoulder chart pattern is used in technical analysis to predict the reversal of a current downtrend.
Now one can read all theories but fun happens when you see charts unfolding in real life. Here's one Chart that resembles the above image -
The above weekly chart is of Godrej Properties and as you can see in the chart - it's a perfect text book Inverse Head and Shoulder pattern with breakout above 310. The stock post breakout is attractive buy with stop loss below 300.
Please do your own due diligence before trading or investment. Do not treat the above as any recommendation
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers