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readtheticker

We are financial market enthusiasts using methods expressed by the Gann, Hurst and Wyckoff with a few of our own proprietary tools. Readtheticker.com provides online…

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Is the Gold Miner Rally Wyckoff Friendly?

Panning for Gold

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 Chart

Investing Quote

"The market always tells you what to do. It tells you: Get in. Get out. Move your stop. Close out. Stay neutral. Wait for a better chance. All these things the market is continually impressing upon you, and you must get into the frame of mind where you are in reality taking your orders from the action of the market itself -- from the tape." ~ Richard D. Wyckoff

"The key to making money in stocks is not to get scared out of them." ~ Peter Lynch

"People somehow think you must buy at the bottom and sell at the top to be successful in the market. That's nonsense! The idea is to buy when the probability is greatest that the market is going to advance." ~ Martin Zweig (The inspiration behind a number of Martin Zweig's methods came, from Jesse Livermore).

"Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected." ~ George Soros

"Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't under-estimate the value of that, but they're not designed to take care of social needs." ~ George Soros

 

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