The inverse head and shoulders is one of the pattern traders watch for to indicate a reversal. Just because the pattern occurs, doesn't mean the target will be reached though. The main issue with chart patterns is false breakouts. This is when the pattern completes, but shortly after the price begins to decline again, resulting in a loss. To control losses place a stop loss order below the right shoulder. Targets are only estimates and should be used with some discretion. For example, the targets in Concho and Carrizo may be reached, but expect that it could take many months or even years due to the size of the target. More active traders will seek a target more in line with their trade timeframe.

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