This alert reports the inverted head and shoulders pattern which is common in technical analysis.

An inverted head and shoulders pattern is defined by exactly 5 consecutive turning points.  The first point is a low.  The last point is a low at approximately the same price as the first point.  The second point is a high.  The fourth point is a high at approximately the same price as the second point.  The middle point is a low, and it must be lower than any of the other 5 points.  Our definition of "approximately the same price" depends on the size of the pattern and the volatility of the stock.

There are many common interpretations of an inverted head and shoulders pattern.  Some people use the first and last points, the shoulders, to draw a support line.  We use a green icon to represent this pattern, since many people use this as a reversal pattern.

The analysis and reporting of an inverted head and shoulders pattern is very similar to the analysis and reporting of broadening patterns, described above.