teletubbies thursday, page-172

HBG, fwiw I think the purest signals come from price and volume. Both can be complex to read, and both have erroneous myths about what signs and patterns mean or their reliability. When I ante up for the good data and depth, then I rely more on volume; when i don't I rely more on indicators on price, and market breadth.

With volume, I keep it pretty simple. Sometimes it tells me stuff and sometimes not. I like expanding volume on a breakout, shrinking volume on a pennant or equilateral triangle or a flag, up til the breakout if breakout is up; expanding volume on a down move is bearish, but a downmove without expanded volume is still bearish cos prices can fall just from lack of demand; I especially look for high volume with little price movement, cos that signals strong accumulation or distribution prior to a big move; strong prices moves up on low volume suggest a fragile rally; peak volume with a peak price rise or fall suggests exhaustion either up or down, specially if the move has been parabolic; etc etc

Hope that helps. There are some great sources out there about reading volume, but not all sources are worth reading.

By the way, i sold my long position on that opening spike this morning. It was a loser, but I'd tailored my position size to the perceived risk so only gave the mm a few crumbs from the weeks profits.