Head and Shoulders Bottom

Head and Shoulders Bottom

A Head and Shoulders Bottom on the USD/CHF daily chart

A bullish reversal pattern defined by three prominent lows with a middle low (the head) that is lower than the other lows (the shoulders). The neckline is drawn above the two price highs that separate the head from the shoulders. Upward penetration of the neckline is typically considered the buy entry signal. Sometimes this pattern is called an Inverse Head and Shoulders.

See also: Head and Shoulders Top