STAYING WITH GOLD
As we keep following the story in gold the value of waiting for the breakout above the consolidation for entry has proven it's worth. The price never rallied enough to trigger a long position in this market (the area marked buy above), and look at the selloff we avoided.
It is generally not advisable to trade the downside breakouts of these formations unless it is with the overall trend. In this case it would have worked for a nice profit, but it is clearly against the trend in the market.
Just look through old charts and mark off these tight consolidation periods, and then note the breakouts which we call continuation patterns, in the direction of the overall trend. It is a very basic way of trading with the trend in the financial markets. This can be done with stocks as well.