Inverse head and shoulders
Three lows form, with the middle low deepest. The final higher low suggests sellers are weakening.
Educational example of a inverse head and shoulders. Real charts are messier — the shape is the idea, not a template.
What confirms it
A close above the neckline, then price holding above it on a retest.
Common trap
Entering while price is still below the neckline, where the downtrend remains intact.
Read it in five checks
- 01Trend: Is the higher chart rising, falling or ranging?
- 02Location: Is the setup at real support, resistance or structure?
- 03Close: Did a full candle close beyond the trigger level?
- 04Invalidation: Where does the chart prove the idea wrong?
- 05Reward: Is there enough clear space before the next barrier?
A chart pattern describes price behaviour; it does not predict the next candle. Use it with a trend filter, a defined stop and a tested risk-reward rule. Educational examples only — not trading advice.
More reversal setups
Price tests the same high twice and buyers fail to push through. It can signal an uptrend is losing control.
Full guide
Price tests the same low twice and sellers cannot continue. It can mark exhaustion at the end of a fall.
Full guide
Three peaks form, with the middle peak highest. The final lower peak shows buyers are losing momentum.
Full guide