Is The Gold Miner Rally Wyckoff-Friendly?

Positive Wyckoff logic likes to see higher volume on up swings and lower volume on down swings.

One way to test this is to measure the Net Volume change (or OBV). Net Volume is simply up day volume less down day volume over a selected time period. In the chart below OBV Net Volume indicator is over a half month period (yeah find that in your standard charts package, nope!). Divergence and OBV Net Volume is confirming price action, this is strength. This is one piece of evidence, of course more is required, but so far this is very positive for the Wyckoff trader.

GDX

NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net 

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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