Volume: As the Head and Shoulders pattern unfolds, volume plays an important role in confirmation. Volume can be measured as an indicator (OBV, Chaikin Money Flow) or simply by analyzing volume levels. Ideally, but not always, volume during the advance of the left shoulder should be higher than during the advance of the head. This decrease in volume and the new high of the head, together, serve as a warning sign. The next warning sign comes when volume increases on the decline from the peak of the head, then decreases during the advance of the right shoulder. Final confirmation comes when volume further increases during the decline of the right shoulder.
As far as I can see, there was increased volume on the left compared with the head. And we see increased volume in the decline from the head. We still dont have the right shoulder, so we will wait and see.
Again, this is not the most likely scenario, but it's something I am watching very carefully.
From stockcharts.com
As far as I can see, there was increased volume on the left compared with the head. And we see increased volume in the decline from the head. We still dont have the right shoulder, so we will wait and see.
Again, this is not the most likely scenario, but it's something I am watching very carefully.
What are your thoughts today? Seems a bit clearer to me.