Head and shoulders

– Stop loss placed on the right shoulder

– To further confirm the downtrend:

1. The neckline should be downward sloping

2. Volume running up to the head should be lower then volume running up the first shoulder, and volume running up the second shoulder should be lower than volume running up to the head

3. Volume should be large when price breaks the neckline

– Stop loss placed on the right shoulder

– To further confirm the trend:

1. The neckline should be upward sloping

2. Decreasing volume going into first shoulder, head and second shoulder

3. Increasing volume on the break of the neckline

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