Inverse Head and Shoulders

Bullish technical pattern. Opposite to the regular head and shoulders pattern, generally used to forecast beginning of a downtrend, the inverted head and shoulder, also known as a "head and shoulders bottom," is used to forecast the beginning of an uptrend. The pattern displays the following features. First, the price of the security falls though a lateral support line (left shoulder). Next price rises just below that support line (now resistance) to retest it, then falls again to a new low (head). From that point price establishes an oversold and solid base, moves upward toward the test prior lateral resistance line (right shoulder) and breaks above it. From that point on, resistance become support and price continues to climb.