Inverse head and shoulder as both reversal and continuation

2021年11月24日

Hi earlier I published a head and shoulder as a continuation pattern for QNT. I found a viewer was confused and believed head and shoulder was solely a reversal pattern. Here is a good example head and shoulder acting both as a reversal and continuation pattern. On Mana's chart, we see there are 2 head and shoulder patterns. The first one you can consider as a reversal. The price starts to drop and it follows an inverse head and shoulder pattern. Price rallies after the inverse head and shoulder. The second inverse head and shoulder is a continuation pattern. The price continues to rally after the second inverse head and shoulder. It is stated in John Murphy's book, head and shoulder can both act as continuaion and reversal pattern. One most important thing to take home is regular head and shoulder is bearish while inverse head and shoulder is bullish, no matter it is acting as reversal or continuation pattern.