Head and Shoulders Pattern:

The head and shoulders pattern is a chart pattern that appears in the price charts of financial assets such as stocks, currencies, and commodities. It is considered a reversal pattern, meaning that it signals a potential change in the direction of the asset’s price trend.

The pattern consists of three distinct price movements:

1. The left shoulder: This is the first peak in the price trend, followed by a dip.
2. The head: This is the second, larger peak in the price trend, followed by a dip.
3. The right shoulder: This is the third peak in the price trend, which is usually not as high as the head. It is followed by a dip.

The head and shoulders pattern is completed when the price breaks below the “neckline,” which is a horizontal line drawn through the lows of the left shoulder, head, and right shoulder. This break is considered a sell signal, as it suggests that the price trend may be reversing and heading downward.

It’s important to note that the head and shoulders pattern is not always a reliable indicator of a price trend reversal. It’s always a good idea to use other technical and fundamental analysis tools to confirm any potential trade signals generated by the head and shoulders pattern.

DOUBLE BOTTOM PATTERN:

The double bottom pattern is a chart pattern that appears in the price charts of financial assets such as stocks, currencies, and commodities. It is considered a reversal pattern, meaning that it signals a potential change in the direction of the asset’s price trend.

The pattern consists of two distinct price movements:

1. The first bottom: This is the first dip in the price trend, followed by a rally.

2. The second bottom: This is the second dip in the price trend, which is usually not as low as the first            bottom. It is followed by a rally.

The double bottom pattern is completed when the price breaks above the “neckline,” which is a horizontal line drawn through the highs of the rallies between the two bottoms. This break is considered a buy signal, as it suggests that the price trend may be reversing and heading upward.

It’s important to note that the double bottom pattern is not always a reliable indicator of a price trend reversal. It’s always a good idea to use other technical and fundamental analysis tools to confirm any potential trade signals generated by the double bottom pattern.

Is head and shoulders bullish inverse?

An illustration of a bullish reversal pattern is the inverse head-and-shoulder pattern. This indicates that the price movement and trend prior to the emergence of this pattern were negative. The inverse head-and-shoulder pattern frequently manifests itself near the base of a market movement.