Inverted Head & Shoulders

  • Usually forms in a downtrend
  • Composes of three inverted bumps representing an inverted left shoulder, head, and right shoulder with the inverted head being the lowest among the three inverted bumps.
  • Has a neckline connecting the surfaces of the inverted left and right shoulder, which serves as a major resistance
  • Usually volume is greatest on the left shoulder then descends towards the right shoulder
  • Effect: A breach on the neckline can send the stock northwards until it reaches a considerable resistance
Inverted Head & Shoulders