A bullish reversal chart pattern with three troughs — the middle trough (head) being the lowest and the two outside troughs (shoulders) being higher and roughly equal. It signals a potential trend reversal from bearish to bullish.
Example
“For example, after a prolonged downtrend in Bitcoin, an inverse head and shoulders pattern forms with the head at $15,500 and shoulders at $18,000, signaling a potential reversal when price breaks above the $20,000 neckline.”