Pretcher certainly applies his artistic license liberally. Highest volume at the head is incorrect. Stockcharts.com shows this example
. Note that the left shoulder has the highest volume, and the next two volume tops slant downward from there.
And what's with his mix of Dow Jones price and a moving average of NYSE volume? There's no H&S shape whatsoever on the NYSE, btw. If one wants to mix and match to show a H&S, at least try to show an actual classic formation. And whoops, this example didn't work out for the classic outcome...
QUOTE (spielchekr @ Aug 26 2011, 07:43 PM)
I meant to post this at the height of the recent "head and shoulders volume confirmation" debate, but it slipped my mind until now.
Textbook H&S pattern with all the necessary volume confirmation