Volume analysis

[Jinzpro]

Hi all, for my first post, I thought I'd ask something simple (hopefully)... volume.

What is a red flag in terms of volume that you would follow? I understand generally speaking a extreme jump in volume can signal a top and the time to sell, but what's the key to seeing sustainable high volume (still some up movement potential) versus non sustainable?

I would like to point to ETFC in January: http://stockcharts.com/h-sc/ui?s=etfc&p=D&b=5&g=0&id=p70307335933

as an example.

Would volume numbers in this case have given it away to anybody, or would other indicators have factored more prominently?

[Dr PennyStock]

Welcome to the board.

The volume is the main indicator in technical analysis, but, it must be related with other indicators, you must always compare every candle with the correspondent volume, this way you can much better understand what happened and what will happen.

An extreme jump in volume is usually signal of a bottom or a top, but, to recognize continuation patterns, you must follow what I told you above.

ETFC is not a good example because it hasn't any big variations in volume.   

[eric1960]

Look at the chart!!! Some buyout rumors on YHOO MB probably not true but possible. A lot of open interest on the April 2.00 calls. This is a good bet for a penny stock. Was strong today on  high volume.  Volume:   90,387,633 Avg Vol (3m):   39,453,700