Inverse Head and Shoulders
BullishReliability: HighAlso called · inverse H&S, reverse head and shoulders
A bullish reversal — head and shoulders turned upside down.
How to spot it
- Of the three lows, the middle one is the lowest
- Volume comes in on the neckline break
Why this shape forms
Three tests of a low where the middle is deepest and the last is shallow. Selling pressure ran out. The shallow third low is the whole point; if all three are the same depth it is a different shape.
Where it actually means something
It belongs at the end of a long decline. An inverse head and shoulders after a big run-up rests on much weaker ground.
What else to check
Take a close above the neckline and check that the breakout candle traded above its recent average volume. Breaks without volume get retraced often.
This means you're wrong
Void if the neckline break fails and the head's low is taken out again.
The mistake beginners make
Treating a neckline break with no volume as a real breakout.
Easy to confuse with
Frequently confused with a double bottom. Two lows is a double bottom; three lows with the middle deepest is inverse head and shoulders.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.