Inverse Head & Shoulders Technical Pattern
Learn about the Bearish Head-and-Shoulders pattern in stock trading - a reversal pattern that signals potential downward movement. Understand how to identify and trade this technical analysis pattern effectively with volume analysis and key indicators.
Recent Inverse Head & Shoulders Patterns
15 patterns found
Warrior Met Coal Inc
US
Market Cap: 2.29B
Industry: Coking Coal
Inverse Head & Shoulders
7/10/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
Forbo Holding AG
CH
Market Cap: 1.54B
Industry: Building Products & Equipment
Inverse Head & Shoulders
7/10/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
ICON PLC
IE
Market Cap: 12.38B
Industry: Diagnostics & Research
Inverse Head & Shoulders
7/10/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
Ferro S.A.
PL
Market Cap: 216.91M
Industry: Building Products & Equipment
Inverse Head & Shoulders
7/10/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
Trex Co Inc
US
Market Cap: 5.88B
Industry: Building Products & Equipment
Inverse Head & Shoulders
7/10/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
Neuren Pharmaceuticals Ltd
AU
Market Cap: 1.25B
Industry: Biotechnology
Inverse Head & Shoulders
7/10/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
Shoe Carnival Inc
US
Market Cap: 585.79M
Industry: Apparel Retail
Inverse Head & Shoulders
7/10/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
IGO Ltd
AU
Market Cap: 2.18B
Industry: Other Industrial Metals & Mining
Inverse Head & Shoulders
7/10/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
Zymeworks Inc
US
Market Cap: 1.02B
Industry: Biotechnology
Inverse Head & Shoulders
7/9/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
Celldex Therapeutics Inc
US
Market Cap: 1.35B
Industry: Biotechnology
Inverse Head & Shoulders
7/9/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
ENERSENSE INTERL. OYJ
FI
Market Cap: 52.63M
Industry: Specialty Business Services
Inverse Head & Shoulders
7/9/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
Selecta Biosciences Inc
US
Market Cap: 277.19M
Industry: Biotechnology
Inverse Head & Shoulders
7/9/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
Silence Therapeutics PLC
GB
Market Cap: 273.46M
Industry: Biotechnology
Inverse Head & Shoulders
7/9/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
OPmobility
FR
Market Cap: 1.86B
Industry: Auto Parts
Inverse Head & Shoulders
7/9/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
DoubleVerify Holdings Inc
US
Market Cap: 2.64B
Industry: Software - Application
Inverse Head & Shoulders
7/9/2025
Bullish reversal pattern with three troughs, the middle being lowest, often signaling a trend change from bearish to bullish
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View Full Platform →About Inverse Head & Shoulders Patterns
Inverse Head & Shoulders patterns are technical chart formations that traders and investors use to identify potential entry and exit points. These patterns are based on historical price movements and can help predict future price direction.
Understanding the Bearish Head-and-Shoulders in Stocks
What is the Bearish Head-and-Shoulders Pattern in Stocks?
The Bearish Head-and-Shoulders pattern is a reversal pattern that appears at the end of an uptrend, indicating a potential downward movement. This pattern forms when the price of a stock creates three successive peaks, with the middle peak (head) being the highest, flanked by two lower peaks (shoulders). In stock trading, the Bearish Head-and-Shoulders pattern is significant because it often marks the end of a bullish phase and the beginning of a bearish trend. Recognizing this pattern can help traders anticipate price movements and make strategic trades.
How to Identify Bearish Head-and-Shoulders Patterns
Identifying the Bearish Head-and-Shoulders pattern involves several key steps:
- Initial Uptrend: Look for a clear uptrend where the price reaches new highs.
- Left Shoulder: The price hits a high point, falls, and then rises again.
- Head: The price forms a higher high than the left shoulder and falls again.
- Right Shoulder: The price forms a lower high, similar to the left shoulder, and then falls.
- Neckline Breakout: The price breaks below the neckline, confirming the pattern.
Identifying a Bearish Head-and-Shoulders Pattern
In this example, we use a typical candlestick chart to illustrate the formation of a Bearish Head-and-Shoulders pattern. Key elements to observe include the initial uptrend, the formation of the left shoulder, head, and right shoulder, and the subsequent breakout.
- Initial Uptrend: The price of the stock shows a clear uptrend, indicating bullish market sentiment.
- Left Shoulder: The price hits a high point and then falls.
- Head: The price forms a higher high and then falls.
- Right Shoulder: The price forms a lower high, similar to the left shoulder, and then falls.
- Breakout Confirmation: The price breaks below the neckline, confirming the pattern.
Bearish Head-and-Shoulders Pattern

Key Indicators
- Candlestick Patterns: Look for reversal candlestick patterns near the shoulders.
- Volume Spikes: Increased trading volume often accompanies the breakout, indicating strong selling interest.
- Resistance Levels: The shoulders should align with significant resistance levels on the chart.
Bearish Head-and-Shoulders Pattern with Volume Analysis
This example highlights the role of volume in confirming the Bearish Head-and-Shoulders pattern. Volume analysis can provide additional confidence in the pattern's validity.
- Initial Uptrend: The price trend is upward, characterized by increasing prices and moderate volume.
- Left Shoulder: The price hits a high point with moderate volume as sellers begin to enter the market.
- Head: The price forms a higher high with moderate volume and then falls.
- Right Shoulder: The price forms a lower high with moderate volume and then falls.
- Breakout: The price breaks below the neckline with a significant spike in volume, confirming the pattern.
Bearish Head-and-Shoulders Pattern with Volume

Frequently Asked Questions
What is the Bearish Head-and-Shoulders pattern in stock trading?
The Bearish Head-and-Shoulders pattern in stock trading is a reversal pattern that appears at the end of an uptrend. It indicates a potential downward movement and is characterized by the price forming three successive peaks, with the middle peak being the highest, flanked by two lower peaks.
How reliable is the Bearish Head-and-Shoulders pattern in stocks?
The Bearish Head-and-Shoulders pattern is considered a reliable bearish reversal signal in stock trading, especially when confirmed by increased trading volume and a strong breakout below the neckline. However, it should be used alongside other technical analysis tools.
Can the Bearish Head-and-Shoulders pattern appear in any stock?
Yes, the Bearish Head-and-Shoulders pattern can appear in any stock. It is a widely applicable chart pattern used in technical analysis across various assets, including stocks.
What common mistakes should be avoided when trading the Bearish Head-and-Shoulders pattern?
Common mistakes include entering the trade too early before the neckline breakout confirmation, not confirming the pattern with volume analysis, and failing to set appropriate stop-loss levels to manage risk. By understanding and utilizing the Bearish Head-and-Shoulders pattern, traders can better anticipate bearish reversals and optimize their trading strategies for improved outcomes in the stock market.
What are the key indicators to consider when trading the Bearish Head-and-Shoulders pattern in stocks?
Key indicators include identifying significant resistance levels, confirming the pattern with increased volume during the breakout, and observing reversal candlestick patterns near the shoulders. These indicators help validate the Bearish Head-and-Shoulders pattern and provide insights for potential significant price movements.