Also called: inverted head and shoulders, h&s bottom, reverse h&s
A bullish reversal pattern with three troughs — a deeper middle trough flanked by two higher lows — signaling a downtrend is ending.
An inverse head and shoulders is the upside-down mirror of the classic top pattern. It forms three troughs at the bottom of a downtrend: a left shoulder, a deeper head, and a right shoulder roughly equal in height to the left. The peaks between the troughs form the neckline — a break ABOVE the neckline confirms the reversal.
The story this pattern tells is that sellers are running out of conviction. The first shoulder is a normal continuation low in the downtrend. The head pushes to a new low, but the rebound is strong. The right shoulder fails to make a new low — meaning the sellers couldn't even retest the bottom. That's a crack in the bear case, and the neckline break is when the buyers take over.
The measured move target is the distance from the head to the neckline, projected up from the breakout. A 250-pip head depth implies a 250-pip rally above the neckline.
Gold (XAUUSD) printed a textbook inverse H&S on the daily chart in late 2022, bottoming at $1,615 with a clean neckline break at $1,800. The follow-through rally took price to $2,070 within five months.
Frequently asked about inverse head and shoulders
What is an inverse head and shoulders in trading?+
A bullish reversal pattern with three troughs — a deeper middle trough flanked by two higher lows — signaling a downtrend is ending.
When will I see inverse head and shoulders used in real trading?+
At the end of long downtrends, often near major support zones, oversold RSI conditions, or after a final capitulation candle.
What is the most common mistake traders make with inverse head and shoulders?+
Calling any three-low pattern an inverse H&S. The right shoulder MUST hold above the head, the volume profile should taper through the right shoulder, and the neckline break needs a clean close.
What do experienced traders know about inverse head and shoulders that beginners don't?+
Combine the inverse H&S with a higher timeframe trend shift. If the daily chart is forming the pattern AND the weekly RSI is turning up from oversold, the win rate jumps significantly.
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