A Diamond TOP formation for the XAU?
#1
Posted 17 October 2003 - 11:48 PM
The XAU is showing a Chart pattern indicative of a Market Reversal. This pattern is called a Diamond Shape Formation.
The XAU daily chart is displayed to show this chart pattern. However, not all Diamond Shape Chart patterns guarantee a Market reversal. On October 15, I noticed that NEM was on an uptrend since October 6 of this year with volume decreasing.
Between the two indicators of price to volume using NEM and the XAU chart pattern, I shorted one of the mining stocks on October 16 when the XAU OHLC bars reached the upper boundary of the diamond. (XAU = 93.50).
The problem? I fear not being awake at the wheel should Gold stocks take off on a buy signal.
Any comments? or suggestions?
#2
Posted 18 October 2003 - 04:25 AM
http://stockcharts.com/def/servlet/SharpChartv05.ServletDriver?chart=$xau,uu[l,a]daclynay[dc][pb13!b50!b200][iub14!la12,26,9!lh14,3][j9772280,y].gif
#3
Posted 18 October 2003 - 06:19 AM
#4
Posted 18 October 2003 - 09:26 AM
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#5
Posted 21 October 2003 - 03:42 AM
With the XAU, it's rather difficult to acknowledge such a pattern without the volume characteristics needed to make such an assumption.
Daily with Volume:
http://ichart.yahoo....z=m&a=v&p=s.gif
Weekly with Volume:
http://ichart.yahoo....z=m&a=v&p=s.gif