Inverse Head and Shoulders
An inverse head and shoulders is a chart pattern in technical analysis indicating a potential reversal from a downtrend to an uptrend; it forms three troughs, with the middle trough (the head) the lowest and the outer troughs (the shoulders) higher, connected by a neckline that slopes or runs horizontal.
Example: In a daily chart, a stock forms three troughs with the head being the lowest; after the right shoulder, the price closes above the neckline, which may indicate a potential reversal of the downtrend.
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