Here Is One Way To Avoid Taking A Wrong Trade

When a stock is pulling
back from the high/low, remember to watch volume. It may give you a
valuable warning.

11:25:36

Intraday Setup Alert

Apple Computer (AAPL), on its 3-minite chart, is testing the 15-period
SMA. AAPL is up 92 cents at 33.97.

12:00:18

Follow up on the 11:25 story (AAPL)

The issue is extending its gains, and it is now trading at 34.61, up
1.56.

13:08:21

Follow up on Apple Computer (Part II)

It is now trading below its 15-period SMA on its 3-minute chart and
breaking down below a rising trendline. AAPL is at 34.73, up 1.68.

As you can see below, this pullback was
accompanied by decreasing volume, and the issue successfully resumed its uptrend.

Now look at the chart below. This pullback was different. Volume was actually
increasing.

Watch volume. It may save you from taking a wrong trade.