Inverted Head and Shoulders Pattern

The Head and Shoulders Pattern can sometimes be inverted. The inverted head and shoulders is typically seen in downtrends. What's noteworthy about the inverted head and shoulders is the volume aspect.

• The inverted left shoulder should be accompanied by an increase in volume.

• The inverted head should be made on lighter volume.

• The rally from the head however, should show greater volume than the rally from the left shoulder.

• Ultimately, the inverted right shoulder should register the lightest volume of all.

• When the stock then rallies through the neckline, a big increase in volume should be seen.