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The below chart shows an Inverse Head & Shoulders pattern. Itâs a clue that the market might go up after being down.
- Left Shoulder, Head, Right Shoulder: Three dips, with the middle one (the head) being the lowest.
- Neckline: A resistance line where the price struggles to go higher.
- Breakout: When the price finally breaks through that neckline, itâs a signal the market might start rising.
This pattern means: the downtrend might be ending, and itâs time to watch for upward moves.