Example Trade Description Current Inv. HS Examples The following chart shows the Inverse Head and Shoulders pattern formation and its trade in Social Media ETF (SOCL) from November 2015 to April 2016 . Here are some of the key points and how it is traded. ● SOCL was trading in a significant downtrend since December 2015. ● Volume build-up was heavy in the left shoulder and left half of the head. ● Inverse H&S pattern completed with fully formed right-shoulder. ● Breakout above neckline $18.18 with increased volume for long entry 1: 18.40 (4/8/16) ● Stop placed below the right-shoulder's low $17.25 ● Target zones: $19.81-20.25, $21.53-22.44, $24.18-25.07. Head Height: $2.63 ● Target zone 1 ($19.81-20.25) was reached on 5/31/16 ● Target zone 2 ($21.52-22.44) was reached on 7/11/16. ● Expecting a pullback before continuing its target towards Target zone 3. ● Notice while building the right-shoulder, volume was light compared to the left-shoulder. .
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