What is the inverse head and shoulders pattern?
The inverse head and shoulders is a bullish reversal pattern. The same shape upside down: a deeper middle trough between two shallower ones, with the neckline above.
How to spot an inverse head and shoulders
- 1Find three troughs after a decline, with the middle one the deepest.
- 2Draw the neckline through the two highs between the troughs.
- 3The pattern completes when price closes above the neckline.
How does the inverse head and shoulders form?
The same structure upside down: a deeper middle trough between two shallower ones, with the neckline above.
How do you confirm a inverse head and shoulders?
A right shoulder that stays well above the head shows sellers running out of conviction. Compare the two shoulders' depth directly.
When does the inverse head and shoulders fail?
It fails when the right shoulder undercuts the head. That is not a shoulder, it is a new low, and the structure never existed.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the inverse head and shoulders, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a inverse head and shoulders. Where did price go next?
Inverse Head and Shoulders: common questions
Is the inverse head and shoulders bullish or bearish?
The inverse head and shoulders is bullish. A right shoulder that stays well above the head shows sellers running out of conviction.
How do you spot an inverse head and shoulders?
Find three troughs after a decline, with the middle one the deepest. Draw the neckline through the two highs between the troughs. The pattern completes when price closes above the neckline.
What is the difference between the inverse head and shoulders and the head and shoulders?
The inverse head and shoulders: The same shape upside down: a deeper middle trough between two shallower ones, with the neckline above. The head and shoulders: Three peaks: a higher middle one (the head) between two lower ones (the shoulders), joined underneath by the neckline.
How reliable is the inverse head and shoulders?
No chart pattern works every time. It fails when the right shoulder undercuts the head. That is not a shoulder, it is a new low, and the structure never existed. That is why it helps to wait for confirmation and to practice on many real examples before relying on it.
How can I practice spotting the inverse head and shoulders?
Use the real charts on this page: each one stops where the inverse head and shoulders completed, so you can make a call and then see what happened. The free Chartle app mixes the inverse head and shoulders in with 48 other patterns in short daily sessions.
Keep learning
- Chart pattern gameGuess where price goes next on real charts, all 49 patterns mixed.
- All 49 chart patternsEvery bullish and bearish pattern, with a printable cheat sheet.
- How to read candlestick chartsBodies, wicks and colors explained from the start.
- Cheat sheet PDFAll patterns on two printable pages.
