Inverse Head and Shoulders

What it is

The inverse version is the mirror image: three lows with the middle one the deepest, and a neckline across the two highs between them.

It is complete only after a candle closes above the neckline.

How ClosedCandle detects it

• Five consecutive confirmed swing pivots: shoulder, neckline point, head, neckline point, shoulder. The swing before the left shoulder must start beyond both neckline points.
• The head is at least 0.5× ATR lower than both shoulders, and the two shoulders are within 1× ATR of each other.
• The neckline joins the two swing highs between the troughs; the pattern spans at most 200 candles.
• Confirmed when a candle closes beyond the neckline; invalidated by a close beyond the right shoulder (also the measured stop), or after 30 candles.
• Only closed candles are used; a wick through a line never counts. Once recorded, the detection is never changed.

Full methodology · how setups are measured.