Point & Figure Chart of Gold

Looks spooky. I'm long, but this is having me second-guess that position. Maybe wait for the resistance to break about ~1380, but that's a good 15% from here. Marking this chart as a short because that's what I think it shows. Primary trend is real bearish!

I like how point and figure charts compress price action without respect to time. Instead, it shows you the variable "trading time" like Mandelbrot talks about in his book The Misbehavior of Markets. There's a lot of fractal noise in price. Moving averages filter that out over time, but volatility doesn't give a damn about time. Sometimes there is just a lot more price action, and other-times it's just "slow".