Technical Analysis Inverse Head & Shoulder

Inverse Head & Shoulder Pattern is a Down Trend Reversal Pattern. Hence the assumption is there already exists a Down Trend. Inverse Head & Shoulder Pattern can be explained as follows

1. Price falls to a dip and subsequently rises.
2. Then, the price falls below the former low and again rises.
3. And finally, falls again, but not to the second low, and rises once more.

The first and third dips are shoulders, and the second dip forms the head.



Other Reversal Patterns

Technical Analysis Head & Shoulder Pattern

Technical Analysis Triple Top

Technical Analysis Triple Bottom

Technical Analysis Double Top

Technical Analysis Double Bottom