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Community detection is an important task for mining the structure and function of complex networks. Generally, there are several different kinds of nodes in a network which are cluster nodes densely connected within communities, as well as some special nodes like hubs bridging multiple communities and outliers marginally connected with a community. In addition, it has been shown that there is a hierarchical structure in complex networks with communities embedded within other communities. Therefore, a good algorithm is desirable to be able to not only detect hierarchical communities, but also identify hubs and outliers. In this paper, we propose a parameter-free hierarchical network clustering algorithm SHRINK by combining the advantages of density-based clustering and modularity optimization methods. Based on the structural connectivity information, the proposed algorithm can effectively reveal the embedded hierarchical community structure with multiresolution in large-scale weighted undirected networks, and identify hubs and outliers as well. Moreover, it overcomes the sensitive threshold problem of density-based clustering algorithms and the resolution limit possessed by other modularity-based methods. To illustrate our methodology, we conduct experiments with both real-world and synthetic datasets for community detection, and compare with many other baseline methods. Experimental results demonstrate that SHRINK achieves the best performance with consistent improvements.