What do you make of the high volume weekly down bars just off the high and the bar that hit the recent low, and the lower volume weekly up bars the last two weeks? Do you consider volume in your analysis? Looks like it shouldn't go back under last week's low if you were long it from right here.
Well, the pattern itself can actually put in a lower low and remain valid, so it's up to the trader where he/she wants to define their risk. As far as volume goes, I only look at it in the most rudimentary way (see my LOW chart) mostly looking at what might be institutions taking profit. What's interesting about this weekly is that volume-wise it doesn't show the complete picture. On the daily those two weeks where nothing too far out of the ordinary. The volume on 6/26 was almost 3x normal but price didn't move all that much. Perhaps indicating a large position was closing, but enough buyers were coming in to keep the range reasonable. Just a guess...