Slang term for an inverse head and shoulder
Named for the image of Kilroy popular among those that lived through WWII, it represents the chart pattern of an inverse, or upside down head and shoulder. The reverse head and shoulder reflects a failure to make another lower low in the right shoulder. As the market breaks above the neckline (also showing ability to make higher high, a bullish signal, or a reversal from the previous decline is given.
While the Kilroy signal a bottom, the head and shoulder signals a top.
An engraving of the Kilroy character from WWII. The reverse head and shoulder pattern below shows a striking resemblance, hence the name.
