A Inverse Head and Shoulders is a bullish reversal pattern which forms after a strong move downwards. Its exact opposite of the Head and Shoulders pattern. It consists of a low as the left shoulder, lower low as the head and the higher low as the right shoulder and a neckline is drawn by connecting the highs. This pattern has 3 different types of neckline. First one is a downward sloping neckline. This is the weakest reversal signal. Second is the horizontal neckline. Third is the upward sloping neckline which provides high probability reversal signal. The price target of this formation is height of the formation measured up from the breakout point.
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Inverse Head and Shoulders Pattern
October 14, 2014 at 12:46
by K. Prabhu
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