Excellent stuff Jako!
I asked because I thought it was more complicated than the author made it out to be. It's from Leibovit's book on volume. He demonstrated RSI (based on price closes) on one chart to show that price alone is insufficient (ok so far so good) but then on his 2nd chart simply stated that because the volume on the second downwave of the 'W' (just below 40) was increasing, we should expect higher prices. I'm glad you think it's not so simple, contrary to what he suggests-- basically that this increasing volume is a signal for a change in direction. See my chart with support under 'W'.
