Inverse Head & Shoulders
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.