Stocks with Inverse Head & Shoulders Pattern
↑ BullishThe Inverse Head and Shoulders is a bullish reversal pattern that forms at the end of a downtrend. It consists of three troughs: two shallower ones (shoulders) flanking a deeper one (head). The neckline connects the highs between the troughs, and a break above it confirms the reversal.
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Frequently Asked Questions
What does an Inverse Head and Shoulders mean?
It signals a potential reversal from a downtrend to an uptrend. The pattern shows that selling pressure is weakening (each low is less aggressive) and buyers are stepping in.