🟢 Reverse Head & Shoulders on XAUUSD (CFD)
On the 1H chart, the market has recently completed a five-leg structure, which visually aligns with a reverse head & shoulders pattern:
① Left Shoulder: Formed around 3338 with a local support bounce.
② Minor High: First rejection confirming neckline area.
③ Head: The lowest point near 3320, creating a liquidity sweep below previous lows.
④ Right Shoulder: Retesting neckline after liquidity grab.
⑤ Confirmation: Price rejecting higher lows, aligning with bullish order flow.
Key Technical Insights:
Neckline Break: A clean break above the descending neckline (around 3348–3350) could validate the pattern.
Targets:
First target around 3350–3360 (short-term liquidity pool).
Extended target near 3410 if bullish momentum continues.
Invalidation: A drop back below 3320 would invalidate the structure and open the door for deeper bearish continuation.
SMC Context:
The head represents a sweep of liquidity beneath prior lows.
The right shoulder forms with mitigation and BOS signs, suggesting a possible shift in market structure.
If BOS confirms above the neckline, price is likely to fill imbalance zones toward higher liquidity areas.
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📌 This setup highlights both a classical pattern (reverse H&S) and smart money concepts, merging retail and institutional perspectives for a stronger confirmation bias.
On the 1H chart, the market has recently completed a five-leg structure, which visually aligns with a reverse head & shoulders pattern:
① Left Shoulder: Formed around 3338 with a local support bounce.
② Minor High: First rejection confirming neckline area.
③ Head: The lowest point near 3320, creating a liquidity sweep below previous lows.
④ Right Shoulder: Retesting neckline after liquidity grab.
⑤ Confirmation: Price rejecting higher lows, aligning with bullish order flow.
Key Technical Insights:
Neckline Break: A clean break above the descending neckline (around 3348–3350) could validate the pattern.
Targets:
First target around 3350–3360 (short-term liquidity pool).
Extended target near 3410 if bullish momentum continues.
Invalidation: A drop back below 3320 would invalidate the structure and open the door for deeper bearish continuation.
SMC Context:
The head represents a sweep of liquidity beneath prior lows.
The right shoulder forms with mitigation and BOS signs, suggesting a possible shift in market structure.
If BOS confirms above the neckline, price is likely to fill imbalance zones toward higher liquidity areas.
---
📌 This setup highlights both a classical pattern (reverse H&S) and smart money concepts, merging retail and institutional perspectives for a stronger confirmation bias.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.