Learning Hub

Inverse Head & Shoulders

bullish

Definition

Three troughs: a lower middle trough (head) between two higher troughs.

Psychology

Sellers tried three times; the middle was deepest, but they failed and buyers took over.

Real-life analogy

💡 Digging three holes — the middle is deepest — then climbing out for good.

Expected direction

up

Entry / Stop / Target

Entry: On a close above the neckline. · Stop: Below the right shoulder. · Target: Head-to-neckline height projected up from the neckline.

Historical behaviour

Highly reliable bottoming pattern when fully formed.

Illustrative success rate

~70% after a confirmed neckline break · High reliability

Common beginner mistakes

  • Anticipating the break
  • Skipping volume confirmation

Quick quiz — did you understand?

1. Is the Inverse Head & Shoulders generally considered bullish, bearish, or neutral?

2. After a confirmed Inverse Head & Shoulders, the expected direction is usually:

3. Which is a common beginner mistake with the Inverse Head & Shoulders?

Educational and probability-based analysis only. This is not financial advice and not a prediction of real market outcomes.