The head and shoulders pattern forms when a stock’s price rises to a peak and subsequently declines back to the base of the prior up-move. Then, the price rises above the former peak to form the “nose” and then again declines back to the original base. Then, finally, the stock price rises again, but to the level of the first, initial peak of the formation before declining back down to the base or neckline of chart patterns one more time. Itdescribes a specific chart formationthat predicts a bullish-to-bearish trend reversal. This pattern is believed to be one of the most reliable trend reversal patterns.
Hi,
The formation of Head and Shoulder has been a continuous decrease in the volume. That means the volume will be higher in the left shoulder and eventually it decreases with the formation of the head and right shoulder. The main process of the head and shoulder pattern is accumulation and distribution. The duration to form each should be a minimum 1 month.
Watch the below video…..I hope this will help you
https://www.youtube.com/watch?v=dCuxpo7gp4U