Three troughs with the middle one deepest and the outer two near the same level. A break above the neckline linking the rally highs marks a bottom.
How to identify it
- Left shoulder, lower head, higher right shoulder
- Neckline drawn through the two reaction highs
- Buying pressure increases on the break
Entry
Buy a close above the neckline or a retest of it from above.
Stop loss
Below the right shoulder low.
Target
Head-to-neckline depth projected up from the break.
Invalidation
Price falls back under the neckline and through the right shoulder.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your inverse head & shoulders trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.