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Chart Patterns · Price Action Mastery Advance · Lecture 5 · 21:36 video · Urdu / Hindi

Inverse head and shoulders: entry, stop loss and target

The inverse head and shoulders is the bullish mirror of the head and shoulders. This lecture covers the common mistake, the confirmation and lower-risk ways to trade it.

Dr. Qazi Abdul Basit
Video lesson by Dr. Qazi Abdul Basit, Ph.D · Forex & Gold trader since 2013
Notes by the Qazi Forex Tips team · Updated 23 October 2026
Watch in Urdu / Hindi · 21:36·Open on YouTube

In this lecture

  • What the inverse head and shoulders is and how it works
  • The mistake most traders make with it
  • When the pattern is likely to hold or fail
  • The first pullback entry after the break
  • Lower-risk ways to trade it

Lesson notes

How it forms

After a downtrend, price makes a low (left shoulder), a lower low (head) and a higher low (right shoulder). The line across the two highs between them is the neckline.

The common mistake

Buying at the right shoulder before the neckline breaks. Until a candle closes above the neckline, the downtrend may simply continue.

Entry, stop and target

  • Break entry: after a close above the neckline.
  • Pullback entry: wait for price to come back to the broken neckline and hold it.
  • Stop loss: below the pullback low or below the right shoulder.
  • Target: the distance from the head to the neckline, projected up from the break.

Khulasa (Roman Urdu / Hindi)

  • Downtrend ke baad: left shoulder, head (sab se neecha), right shoulder.
  • Neckline ke oopar close se pehle buy na karein.
  • Behtar entry: neckline par pehla pullback.
  • Target: head se neckline ka faasla, oopar ki taraf.

Questions

Is the inverse head and shoulders bullish?

Yes. It is a bullish reversal pattern that forms after a downtrend.

When is an inverse head and shoulders confirmed?

When a candle closes above the neckline.

How do you calculate the target?

Measure from the lowest point of the head to the neckline and add that distance to the breakout point.

Where should the stop loss go?

Below the right shoulder, or below the pullback low if you enter on the retest.

Can the neckline be sloped?

Yes. Necklines can slope up or down; draw them across the two highs between the shoulders and the head.

What if price falls back below the neckline?

The pattern is weakening. Many traders exit if price closes back below the neckline after the break.

Related lessons

Chart PatternsHead and shoulders pattern: how to confirm and trade itMarket AnalysisHow to spot a trend reversal earlyChart PatternsQuasimodo (QM) pattern for scalpers and day traders

Education only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.