Tuesday, 25 September 2012

AUD/USD again rebounds from test of 18 day simple moving average

The 18 day simple moving average on the AUD/USD is a very effective trend indicator at this time frame. Once a trend is established, either up or down, market rebounds from the moving average can signal low risk entries, long or short as the case may be. I find that the direction of the moving average is more telling than whether price is above or below the moving average.

S&P 500 rallies from trend channel retest

Weekly chart shows the trend channel.

Daily chart zooms in on the past year's action to better show the retest.