#LUNC✅ What is the Inverted Head and Shoulders (IH&S)

It is a reversal pattern from bearish to bullish.

In other words: it appears after a downtrend and signals that the price may start to rise.

🧠 Structure of the pattern

Left Shoulder (O1):

The price falls, then makes a small rebound.

Head (C):

The price falls again and makes a lower low (the lowest part of the pattern).

Right Shoulder (O2):

The price falls again, but without making a new low (indicating weakening of selling pressure).

Neckline:

Line that connects the peaks between the shoulders and the head.

When the price breaks this line upwards, it confirms the bullish reversal signal.

🚀 How to trade the IH&S

Entry:

At the breakout of the neckline, with good volume.

Target (Take Profit):

Measure the distance between the head and the neckline, and project this distance upwards, starting from the breakout point.

Stop Loss:

Just below the right shoulder or the neckline, depending on the aggressiveness of the strategy.

💡 Important confirmations

✔️ Monitor the volume — it should increase at the breakout of the neckline.

✔️ Observe if the price makes a pullback (return to test the neckline as support).

✔️ Works best on 4H, daily, or weekly charts.