Head and Shoulders Pattern with Volume

HEAD

HEAD VOL

RIGHT SHOULDER

RIGHT SHOULDER

In general, the head (second peak) should have lower volume than the left shoulder (first peak). This is not necessary, but it shows a decrease in interest. The most important decrease in volume should be on the right shoulder (third peak). The right shoulder should be made on noticeably lighter volume than the previous two peaks. The volume should then increase as it breaks below the neck line and decrease during the small bounce back to the neck line. After the confirmation of resistance at the neck line, the volume should increase as the stock falls lower, showing that selling interest is increasing.

StockTeacher Method Secret Trends and Patterns / 105

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