Glossary › inverse head and shoulders
Trading glossary · patterns
inverse head and shoulders
Three dips with the middle one deepest, like an upside-down head between two shoulders. A climb above its top line can start a rise.
The fuller meaning
A bullish reversal pattern after a decline: a left shoulder low, a deeper head and a higher right shoulder, with a neckline joining the peaks between them. It is confirmed by a close above the neckline; a rough target is the head-to-neckline distance projected up from the break.
inverse head and shoulders.
Related words
apex · ascending triangle · bear flag · bull flag · busted pattern · chart pattern · continuation · continuation pattern · converging lines · cup and handle