Loading ...Long Term Volume patterns
Here are a couple of long term weekly charts on Gold vs the DOW that examine volume patterns over a 26 year period.
Here is a direct quote from the book, Technical Analysis of Stock Trends by Edwards and Magee.
“…in a Bull Market, volume increases when prices rise and dwindles as prices decline; in Bear Markets, turnover increases when prices drop and dries up as they recover.”
A close up view of price action over the past several years shows that in 2016 (so far), volume is declining as price declines in a series of Bull Flags and then Volume spikes as price breaks to the upside of the flag. This looks very different to me than what we have seen over the previous 4 years.
