Inverse Head and Shoulders - Bullish Reversal Pattern This is the opposite of the standard H&S pattern. It signals a potential reversal from a downtrend to an uptrend. The structure is the same but flipped: Left Shoulder: A low point followed by a small rally. Head: A lower dip (the lowest point in the pattern) followed by a rally. Right Shoulder: A higher low than the head but similar to the left shoulder. When the price breaks above the neckline, it confirms the pattern, and traders expect further upward movement.
How Traders Use SHS Patterns
Entry Point: Traders enter a short position (for H&S) or a long position (for inverse H&S) after the price breaks the neckline.
Stop Loss: Placed above the right shoulder (for H&S) or below the right shoulder (for inverse H&S).
Take Profit: The target price is often estimated by measuring the height of the head from the neckline and projecting it downward or upward. #VoteToListOnBinance
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