Inverse Head and Shoulders
A formation of three troughs in which the middle trough is the lowest and the outer two are roughly level, joined by a neckline through the intervening highs.
How it is identified
Neckline = line through the two highs between the troughs; conventional measured move = Head Depth below Neckline, projected up from the break
Unit
qualitative
In depth
The inverse formation is the vertical mirror of the head and shoulders and carries the same caveats: three troughs of similar depth are a common shape in any noisy series. Practitioners conventionally require volume confirmation on the break of the neckline, which at least imposes a testable condition on an otherwise visual judgement. Because bottoms typically form over longer periods than tops, the formation often takes more time to complete, which is a description of how markets behave rather than a rule. Nothing here asserts that the formation predicts a rise.
Worked example
Left shoulder ₹452, head ₹420, right shoulder ₹448, neckline at ₹490. The conventional measured move is 490 - 420 = ₹70 projected up from ₹490, giving ₹560 — an arithmetic convention with no predictive claim attached.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Inverse Head and Shoulders” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.