Inverse Head and Shoulders Pattern
A 1-minute lesson from the MarketPro academy, one of 22 in chart patterns.
The inverse head and shoulders is the mirror image of the standard pattern, forming after a downtrend and signaling a potential shift from selling pressure to buying interest. It consists of three troughs: a deeper middle trough (the head) between two shallower troughs (the shoulders) of similar depth.
The inverse head and shoulders is the mirror image of the standard pattern, forming after a downtrend and signaling a potential shift from selling pressure to buying interest.
It consists of three troughs: a deeper middle trough (the head) between two shallower troughs (the shoulders) of similar depth. A neckline is drawn across the highs between the troughs, and a close above that neckline is generally viewed as the pattern's confirmation point.
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Lesson 2 of 22 in Chart patterns
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