H&S tops

"Failed July 2009 H&S?" Random price pattern as volume did not confirm the pattern, this was not a H&S top.

Current H&S top. Note how this cumulative volume indicator I wrote to help you more easily see what volume is doing, rises on the declines and falls on the major rallies. This is the confirmation needed for a H&S top. Volume analysis is the second most important part of technical analysis only behind price, but nearly every technical pattern has a corresponding volume pattern that must be in place to confirm the pattern. A month or so ago, I thought this might be a Broadening top, I said "The price action looks like a Broadening top, but the volume action appears it will become a H&S top". Be careful, don't forget the importance of volume as many in Technical Analysis have. T.A. has long been described by some as an approach that attracts lazy people, the volume analysis which was missing from the July price pattern of 2009 seems to confirm that statement in some people's case.