An Inverse Head and Shoulders is the bullish mirror image: three troughs, the lowest in the middle, beneath a neckline of resistance. A close above the neckline signals a bottom and a potential rally.
How traders trade it
- Enter on a close above the neckline.
- Project the head-to-neckline depth upward for a target.
- Rising volume into the breakout adds conviction.
See it in dtcharts
Scan for the inverse head and shoulders across markets in the dtcharts terminal — or draw it by hand with the charting tools.