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Forex · chart pattern

Inverse head and shoulders on NZD/USD

On NZD/USD the inverse head and shoulders showed up 20 times. The target came first 40% of the time, the stop 55%, and 5% went nowhere within 12 candles.

Counted on NZD/USD: daily candles from January 2015 and hourly candles from October 2024.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
Daily10%0%100%
Hourly1942%58%0%

NZD/USD against the rest

ChartsFoundTarget firstStop firstWent nowhere
NZD/USD2040%55%5%
All Forex charts11733%59%8%
Every market2,09538%55%6%

The last 8 times

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.

What the inverse head and shoulders is

Three lows with the middle one deepest, then a break above the neckline.

Now picture the head and shoulders standing on its head: a dip, a deeper dip, then another dip. An inverse head and shoulders is three price lows shaped like that. When price climbs above the line over the shoulders, called the neckline, the pattern is complete.

The full inverse head and shoulders lesson, video and quiz ›

Other patterns on NZD/USD

Inside bar · Stochastic bullish cross · Stochastic bearish cross · Spinning top · Doji · MACD bullish cross · MACD bearish cross · EMA 9/21 bullish cross · EMA 9/21 bearish cross · RSI oversold bounce · all of them

The inverse head and shoulders elsewhere

Ethereum · Bitcoin

Questions

How often does the inverse head and shoulders work on NZD/USD?

In 20 cases on NZD/USD, the target (1.5 × ATR) came before the stop (1 × ATR) 40% of the time and the stop came first 55%; 5% went nowhere within 12 candles.

What is the inverse head and shoulders?

Three lows with the middle one deepest, then a break above the neckline.