Important Summary of Head and Shoulder Pattern with Volume
- A prior uptrend
- A left shoulder on heavier volume (point A) followed by a corrective dip to point B.
- A rally into new highs but on lighter volume (point C).
- A decline that moves below the previous peak (at A) and approaches the previous reaction low (point D).
- A third rally (point E) on noticeably light volume that fails to reach the top of the head (at point C).
- A close (point F) below the neckline.
- A return move back to the neckline (point G) followed by new lows.