Vanilla XJO Thread, page-22

Some sage advice from Tom Bowley of Earnings Beat,

I've seen great technical patterns execute, but then fall apart - usually due to one or two key common ingredients in those failures. It's typically either:

(1) A lack of volume to confirm the execution and pattern measurement, or

(2) The volume confirms on the breakout, but the price breakout doesn't hold into the close.

Like everything in technical analysis, strong volume doesn't guarantee that a trade will work. Similarly, weak volume doesn't guarantee us that a technical breakout won't work. As traders, however, we should be looking for price and volume confirmation to increase our odds of success.

Happy New Year.
RB