Strong rally seen between may till august 2016 making higher highs and higher low with minor corrections in between. From mid august till last week of September a downward rally is evident. Lower highs and lower low is seen between this period. A minor upward rally is seen from 321 levels suggesting a double bottom. A neckline is marked joining the bottoms formed on 4th august and 15th September. The neckline is broken on 7th October giving a good indication of head and shoulder pattern. Volume confirmation is also seen.
Hi,
The formation of Head and Shoulder has been a continuous decrease in the volume. That means volume will be higher in the left shoulder and eventually it decreases with the formation of head and right shoulder. The main process of the head and shoulder pattern is accumulation and distribution