Trends with Volume-Marked Breakouts
Volume often marks changes in the trend other than reversal or continuation. There are times when unusual price patterns and volume spikes together should draw your attention by revealing that something in the trend has changed.
For example, the chart in Figure 9.2 shows specific instances of price peaks.
Figure 9.2 High volume at price peaks (Chart courtesy of StockCharts.com)
Large volume spikes appear, which signals some type of change in the current trend. It is easy to assume that it always marks reversal, and once price gaps down and backs into the previous range with another volume spike, the assumption ...
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