[Trade Up]

As we are looking for changing trends we will often come across false breakouts.

While I would never normally rush in on an initial breakout, I take a lot of notice of trading volumes. This is perhaps more useful when shares are falling, and we are looking for that last big sell-off before the shares bottom out.

Next time you see a share turning after a downwad spiral, check the volume just before the turn, and chances are you will see the last leg of the sell off, on high volume.