Hello traders, hope you are having a nice moment. here is a technical analysis on AUDCHF.
Identifying Inverse Head-and-Shoulders Patterns
The inverse head-and-shoulders pattern is used as an indicator. This pattern is associated with a reversal of a downward trend in price. It is one of the more common reversal indications.
As the price moves back downward, it hits a low point (a trough) and then begins to recover and swing upward. Market resistance then pushes it back down into another trough.
Price drops to a point where the market cannot support lower prices, and the price begins rising again. Again, market resistance forces the price back down, and the price drops one last time. If the market can't support a lower price, it doesn't reach the prior low. This causes a higher low before prices rise again. This movement creates three troughs, or low points: the left shoulder, head, and right shoulder.
Identifying Inverse Head-and-Shoulders Patterns
The inverse head-and-shoulders pattern is used as an indicator. This pattern is associated with a reversal of a downward trend in price. It is one of the more common reversal indications.
As the price moves back downward, it hits a low point (a trough) and then begins to recover and swing upward. Market resistance then pushes it back down into another trough.
Price drops to a point where the market cannot support lower prices, and the price begins rising again. Again, market resistance forces the price back down, and the price drops one last time. If the market can't support a lower price, it doesn't reach the prior low. This causes a higher low before prices rise again. This movement creates three troughs, or low points: the left shoulder, head, and right shoulder.