inverted formation

inverted formation

In technical analysis, a chart pattern that is upside down from its usual configuration. For example, a saucer pattern is a U-shaped curve indicating a market bottom. An inverted saucer is an arched formation indicating a market top. When a chart formation is inverted, it indicates the opposite future stock movement of the basic formation. Thus, while a head-and-shoulders formation is a bearish indicator, an inverted head-and-shoulders formation is a bullish indicator.