USDCHF WEEKLY INVERTED HEAD AND SHOULDERS?

The inverted head and shoulders pattern is a technical analysis chart pattern used in trading to predict a reversal in the trend of a security, typically indicating a shift from a downward trend to an upward trend. Here’s a detailed breakdown:

Structure of the Inverted Head and Shoulders Pattern
Left Shoulder: The price declines to a trough and then rises.
Head: The price declines again, forming a lower trough.
Right Shoulder: The price rises again and then declines to a level roughly equal to the first trough (the left shoulder), before rising again.
Key Features
Neckline: This is the resistance line drawn through the peaks of the two retracements (the highs between the left shoulder and the head, and the head and the right shoulder). The neckline can be horizontal or sloped.
Volume: Volume often declines as the pattern progresses and increases during the breakout above the neckline.
Interpretation
Formation: The inverted head and shoulders pattern suggests that the downtrend is weakening and a potential reversal to an uptrend is forthcoming.
Confirmation: The pattern is considered confirmed when the price breaks above the neckline after forming the right shoulder.
Target Price: The target price is often estimated by measuring the distance from the lowest point of the head to the neckline and then projecting that distance upwards from the breakout point.