Reading notes: Come into My Trading Room by Alexander Elder

http://www.amazon.com/Come-Into-My-Trading-Room/dp/0471225347/ref=sr_1_1?ie=UTF8&qid=1308964318&sr=8-1

Some of the best trading opportunities occur after false breakouts. When
prices fall back into the range after a false upside breakout, you have extra
confidence to trade short. Use the top of the false breakout as your stoploss
point. Once prices rally back into their range after a false downside
breakout, you have extra confidence to trade long. Use the bottom of that
false breakout for your stop-loss point.

A one-day splash of uncommonly high volume often marks the beginning
of a trend when it accompanies a breakout from a trading range. A
similar splash tends to mark the end of a trend if it occurs during a wellestablished
move.

Divergences between price and volume tend to occur at turning points.
When prices rise to a new high but volume shrinks, it shows that the
uptrend attracts less interest. When prices fall to a new low and volume
falls, it shows that lower prices attract little interest and an upside reversal
is likely.