AGQ Breakout – Pause Bar Pattern

The XAU broke out yesterday, and closed strong. When an equity index breaks such a long pattern, you can usually expect strong follow through that day.

AGQ provided an entry (as did many other gold/silver stocks) on the 60-minute chart. When you have a long candle followed by a pause candle; take the stock over the high of those candles on the 3rd or 4th candle.  Forget using the pattern if there’s no break by the 5th candle.