Inverse Head & Shoulder Chart Pattern under Construction

An inverted head and shoulder pattern forms a bullish reversal pattern after a downtrend. It consists of three consecutive troughs, with the middle trough, known as the head, being the lowest, and the other two troughs, known as the shoulders, forming higher lows. The pattern resembles a head with two shoulders, hence its name.
Traders interpret the inverted head and shoulders pattern as a sign that the bearish momentum is weakening and a potential trend reversal is imminent. It suggests that buyers are gaining strength, and the price will likely move upward after the pattern completes.