Reversal Patterns · Bullish
Inverse Head and Shoulders
A low, a lower low, and a higher low, then a break of the neckline.
The middle trough is the head. The two side troughs are the shoulders. The neckline connects the rally peaks between them.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- The head is lower than both shoulders.
- The shoulders are roughly comparable, not identical.
- Confirmation is a close through the neckline.
Market context
It is usually studied after a decline. A sloppy version with no neckline break is just three swings.
Entry example
An example entry is the neckline break.
Stop-loss example
An example stop is below the head, or below the right shoulder for a tighter example.
Target example
A common teaching method projects the head-to-neckline distance upward. It is not guaranteed.
Common mistakes
- Drawing a neckline that does not touch the two rally peaks.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.