A buy signal is triggered when a stock hits a minor new low and Ord - Volume on the down leg shrinks by approximately 50 percent or greater against the previous down leg or previous up leg; the stock then closes above the previous low. Both conditions indicate the stock is in a strong position. Confirmation of a bottom is produced when Ord – Volume increases by 50 percent or more on the up leg after the bottom compared to the down leg going into the bottom. Let ’ s take a look at how this works using a hypothetical example: stock “ EDF. ” Figure 3.18 shows EDF declines to $ 50 a share on Ord - Volume of 100 million shares. In this example, EDF rallies and then declines again — with Ord - Volume on the second down leg of 25 million shares, putting in a new low at $ 49.50. You can see that the average daily volume is 75 percent less on the second down leg compared with the first. In this instance, a buy signal is triggered on a close above the previous low of $ 50 a share. Because the energy in this stock had switched from the downside to the upside, Ord - Volume increases on the subsequent up leg — in this instance a 300 percent increase to 75 million shares compared with the volume of the previous down leg of 25 million shares. Figure 3.19 shows hypothetical stock “ MNO ” with average daily volume on a down leg of 100 million shares to a low of $ 50 a share, then a rally and a break to a new low of $ 49.50 a share. Volume on that second down leg declined by 50 percent compared with the previous down leg. The rally from the low at $ 49.50 had a 50 percent increase in Ord – Volume compared to previous down leg and confi rmed the bottom.