•This pattern is formed after a downtrend and is the inverse of the Head and Shoulders and is a bullish reversal.

•The pattern is comprised of three lows, the left shoulder, the head and the right shoulder.

•The first low is the left shoulder on increasing volume and then bounces up to form a reaction peak before retracing on low volume to form the head.

•The stock then makes a second reaction high which will form the neckline with the first reaction high before moving down to form the right shoulder before moving up with volume to break the neckline.

•The downtrend is failing after the Head is formed on low volume and reacts back up to form the neckline.

•The right shoulder is a higher low which confirms that the continuing bearish trend is tiring.

•When the stock moves up to challenge and break the neckline it will usually be on increased volume which will confirm the reversal of trend.

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