How I use the stock with extreme volume signal

A reader has asked how to use these lists. It all depends on your trading horizon and risk appetite. Over next few weeks I will talk about how I use some of this and why.
One of my favorite signal is the extreme volume signal, because I have found significant success with it over the years. It also gives very few candidates to work with.
I primarily use it for long side only but it also can be used for short side. Where the signal appears is also a good indicator. Some of the actual trades will illustrate this.
ABB First signal 11/04/05 at the price of 7.97. Now this was followed by second signal within a month on 12/02/05 giving another opportunity to double up. Since the first signal stock is up 50%.
TIE If you look at TIE over its run so far, you will see this signal many times. Also it illustrates how sellers get washed out or short sellers get trapped. In TIE case the signal on short side was followed by more strength. Same is the case with HANS.
GOOG GOOG had its extreme volume day on 01/20/06 which precipitated its slide.
If you look at today's list , there is one interesting candidate- TRAD. Now it had this same signal a month ago. It went down from 16 to around 13, and yesterday again it showed up so I will be watching it carefully. Appears like some major short position was reversed.
This signal also is very useful on the rare occasion when it appears on large cap stocks. You can see it for yourself on WMT, XOM and GM in recent time.

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