Above average trading volume is found at major tops or bottoms (click on the chart to enlarge it).
Strong volume after a period of weakness signals a bottom. Strong volume after a sharp rally suggests it is time to take some profits.
Gold seems a crowded trade. There is too much volume and the price pattern is not one of a bottom. 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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