Bullish Reversal◐ Heuristic
◆ The PatternThe mirror image — three troughs signaling a bottom
The Inverse Head & Shoulders is the bullish mirror: left trough, a deeper head trough, then a shallower right trough. Breakout above the neckline confirms the bullish reversal. Often forms at the end of extended downtrends.
Target = Neckline + (Neckline − Head)
The deeper the head, the larger the potential move. Volume should increase on the breakout.
// Inverse Head & Shoulders anatomy
Key insight: The neckline doesn't have to be perfectly horizontal — a slightly sloping neckline is normal. What matters is the pattern of three troughs.
Pattern bridge: A bottoming reversal is the mirror image of head-and-shoulders — the same symmetry that statistics reveals in distributions.