Yen Inverse Head And Shoulders With Right-Shoulder Megaphone
Trader Moe | Feb 18, 2015 11:11AM ET
The yen has put in a potential inverse head and shoulders with a megaphone right shoulder.
The megaphone right shoulder has already put in the usual two fake breakouts through the original neckline.
Usually a head and shoulders or inverse head and shoulders with a megaphone right shoulder is a fake H&S or inverse H&S. Usually this potential inverse H&S would take out the low of the head, and that new low would be the head of a real inverse head and shoulders.
However, this rule is not as reliable with inverse head and shoulders patterns as it is with head and shoulders tops. With H&S tops a megaphone right shoulder leads to a higher head over 90% of the time. With an inverse head and shoulders, it leads to a lower head maybe 2/3 of the time.
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