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Noble daily chart showing possible Inverted Head and Shoulders formation
As a major reversal pattern, the Head and Shoulders Bottom usually forms after a downtrend, and its completion marks a change in trend.
The pattern is not complete, and the downtrend is not reversed until neckline resistance is broken in a convincing manner, with an expansion of volume.
After IH&S is confirmed, the projected advance is found by measuring the distance from the neckline to the bottom of the head. This distance is then added to the neckline to reach a price target. However any price target should serve as a rough guide only.
To each his own.
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