After a consolidation price will break out. The presence or absence of support from volume on the breakout tells us how reliable the breakout may be.
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Pennant patterns are one of the most reliable continuation patterns. But in an upwards trend the breakout should have support from volume.
For price to keep rising it requires increased activity of buyers. Upwards breakouts that do not have support from volume are suspicious.
This upwards breakout comes on a day with slightly higher volume, but the balance of volume for the session is downwards. Stronger volume during the session supported downwards movement, not upwards.
The breakout is suspicious and may turn out to be false.
While volume is important for upwards breakouts, it is not so important for downwards breakouts. The market may fall of its own weight.
Original post published @ 04:47 p.m. EST on Elliott Wave Gold.