Great question. What I do there is look at each individual stock, sector ETF, index ETF, etc.. on it’s own & see where the the 10-day EMA (or you can play around with some different periods) tends to trough at. In the case of QQQ, as per the video, you want to look for the drops to the extreme (lowest) level after periods of a prolonged uptrend (i.e.- around where the odds for a top or decent correction begin to become likely, especially based on other technicals such as divergences, overbought conditions, breadth deterioration, etc..)

Play around with the horizontal line to find the “best fit” and then see if there’s a slightly higher “extreme low” level, as there is with QQQ & SPY, where the 10-day vol ema drops to after the first leg down once the top is in after the extreme low volume level is hit.

Periodically, I will make adjustments to the extreme low levels as they can & often do change over time (2+ yrs).

I have been watching this rising wedge pattern

@rsotc Hi Randy,
for your volume 10 day moving average you have 2 lines, a blue one and a red one. Are those values only for QQQ? If I want to apply this methodology for other positions would I have to set those lines up for each stock?

I want to be able to set alerts for low volume. Should I just look at a position for about 10 years and find the levels that normally correspond to a reversal and set the alerts?
Thanks,