Inverse Head and Shoulders
Inverse Head and Shoulders is a technical analysis pattern that is used to identify potential reversals in the price of a security. It is a chart pattern that is formed when the price of a security makes a series of lower highs and higher lows, creating a “head and shoulders” shape. The inverse head and shoulders pattern is the opposite of the traditional head and shoulders pattern, and is used to identify potential bullish reversals in the price of a security.
History of Inverse Head and Shoulders
The inverse head and shoulders pattern was first identified by Charles Dow, the founder of Dow Theory. Dow Theory is a form of technical analysis that is based on the idea that the market is driven by the collective sentiment of investors. According to Dow Theory, the inverse head and shoulders pattern is a sign that the sentiment of investors is shifting from bearish to bullish. This shift in sentiment can lead to a reversal in the price of a security.
Comparison Table
| Pattern | Reversal |
|---|---|
| Head and Shoulders | Bearish |
| Inverse Head and Shoulders | Bullish |
Summary
Inverse Head and Shoulders is a technical analysis pattern that is used to identify potential bullish reversals in the price of a security. It is the opposite of the traditional head and shoulders pattern, and is used to identify potential bullish reversals in the price of a security. For more information about this term, you can visit Investopedia, The Balance, and Investing.com.
See Also
- Head and Shoulders
- Double Top
- Double Bottom
- Rising Wedge
- Falling Wedge
- Cup and Handle
- Flag and Pennant
- Symmetrical Triangle
- Ascending Triangle
- Descending Triangle
