🟢 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.
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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.
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Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.