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In the Gold unadjusted continuous contract we see another example. The Jul
low was retested in late August and again in mid-Sept - note how OBV
increased steadily from the June low at the Jul, Aug, and Sep lows. This was
a sign of strong accumulation, especially during the boring month long price
consolidations in Jul-Aug and Aug-Sep (so boring that I forgot to check my
gold charts and missed the trade).. Note also how Open Interest declined
into the Aug low. When we get into the Aug-Sep consolidation we see open
interest expanding - a sign of short selling which contra indicates the
increasing OBV. This is where the COT information might be useful to see who
was selling and who was buying.
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