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

Stocks and Shares Retirement Rescue

Stocks and Shares Retirement Rescue

Get All The Support And Guidance You Need To Be A Success At Investing In Stocks And Shares. This Book Is One Of The Most Valuable Resources In The World When It Comes To

Get My Free Ebook


Post a comment