Chart patterns

I enjoy looking at charts and finding patterns. I particularly like to study trading volume (click on the chart to enlarge it).

Volume increased sharply in September, November, December, and February, signaling the end of a correction and the beginning of a strong rally.

Strong volume, however, happens close to a top. What caught my attention is that we have experienced spirited trading activity but the market did not move higher.

My question is: Is this a distribution pattern which typically takes place ahead of a correction?

You guessed it. Time will tell.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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