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 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?
