Stock Market Inverted Head and Shoulders

The inverted head and shoulders pattern is a well-known technical analysis pattern traders, and investors use to predict a trend reversal in the stock market. This pattern looks like a human head and two shoulders, where the middle part of the pattern (the head) is lower than the two other parts (shoulders). When the price of a stock breaks out of the neckline (the level that connects the two shoulders), it is considered a signal of a bullish trend reversal. Still, sometimes signals that show the pattern are inaccurate, and what is happening in a real market, such as economic, political, or global events, can also affect the stock market.