What is Inverse Head and Shoulders Pattern?

Inverse Head and shoulders Pattern is the mirror image of head and shoulders pattern.

Read about Head and Shoulder Pattern here:
Inverse H&S Pattern is bullish reversal pattern. Signals the traders to enter into long position above the neckline.

Volume play a major role in both H&S and Inverse H&S Patterns. Usually the spike in volume on breakout is considered as a great signal for bullish entry.

Again a suitable target can be obtained by measuring the distance between head and neckline of the pattern and using same distance to project the target.

After the neckline breakout there is also a probability that prices can be retrace again to neckline due to lack of demand. Prices can only rise if again there is more demand which will lead to bullish uptrend.

Also if the neckline slopes slightly upward that is the sign of greater market strength thus gives further conformation to go bullish on Inverse H&S Patter.

Let us know what do you think about Inverse H&S Pattern? Please comment your views/doubts!

As always nothing works every time in
markets. Please do your research before taking any position. This is only for Educational Purpose.

We are covering all Major Reversal and continuation patterns in this series.
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Next Pattern we will cover: Round Bottom Pattern