![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmKkRhguk4Iv6L8PSHjxdlAsaBT39zX0VDMCt2AveYtN8ie36E7lhwjWyEIb9w5_5A64-uzHA-2_HnxIGJg5RAzoUJ-spdPlMnZU9A70lmviQh7Ozjqci9wBAwVEpk37R111ZwFrxZcvQ/s400/Chart+of+GLD.gif)
Consider the two breakouts highlighted on the chart. Both came after standard consolidations.
A.) After a triangle consolidation, prices formed a strong candle on increased volume. This is a great looking breakout and should have attracted a lot of attention.
B.) This breakout was less then spectacular and the volume was weaker. That doesn't mean it isn't a legitimate breakout. It does mean it's more suspicious.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpb6h6LCoOd-kv_wQ3bKF1IP72t0eVUWYpgxr3LKWTM9lJTpdQG-LOE4zicGOw6LcVkUp2Y6ayv6Rq1SZYYWWYMUPusdJgTsoPYYUHLc16zgZtmOyHbvmdKKIzBw6Iniyf1ImgRRGKr9E/s400/Chart+of+GLD1.gif)
A.) Note the break-out is really a spinning top -- a weak candle. Also note the lack of volume. This is note a great looking break-out.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhkl4uYxb65-UTSBerz9y46q3JNeTuVj7qIgCHCMxVg6_PcXs6QzEHmajO5yMtthUi13V5qpb3qj0n8orp-YE9iNNFmqxQdiso0x5hyphenhyphenAEDXfol1eyi1NQ3Kik3iy3dnDMwK7qBPuqHK-sU/s400/Chart+of+GLD3.gif)
A.) The EMA picture is jumbled. Prices are above the EMAs, both all three are in a tight range with the shorter EMAs below the longer.
B.) The MACD has given a buy signal and
C.) Money is flowing into the security.