Inverse Head and Shoulders

Three troughs with the middle one lowest under a near-horizontal neckline; completes on a close above the neckline.

The inverse head and shoulders forms after a decline: a left shoulder low, a lower head, and a right shoulder at roughly the left shoulder's depth. A near-horizontal neckline joins the two rally highs. Kibar ranks the head-and-shoulders bottom among the more reliable classical patterns.

The right-shoulder low is the level that negates the pattern; a failed pattern can reverse sharply.

How we define it

Swings of at least 2 ATR: left shoulder, peak, head, peak, right shoulder
Neckline: the two peaks within 3% of each other (near-horizontal), tested at least twice; no close above it before the breakout
Head clearly below both shoulders; shoulders at 40-85% of the head depth and within 35% of each other; each leg takes at least 10% of the pattern
Minimum length: 2 months on 1D, 3 months on 1W, 10 days on 4H (from the first boundary test to the breakout or breakdown)
Breakout (up) / breakdown (down): the first candle close above the upper boundary or below the lower boundary by at least 3% on 1D and 1W (1.5% on 4H), following Edwards & Magee
Failed breaks: a breakout or breakdown that closes back inside the boundary within 6 candles on 4H, 5 on 1D or 3 on 1W is removed from the list
Trend filter: breakouts only above the 200-period EMA (40-week EMA on 1W), breakdowns only below it
Watchlist: the pattern meets the length and test rules, has not broken yet, and price is within 3% (or 1 ATR, at most 6%) of the boundary