Monday, 2 December 2013

Gold breaking lower through trend line support

The 4 hour / 240 min chart shows Gold breaking below trend line support, with the move accompanied by a bearish triple moving average cross. The triple moving average cross is my favourite entry signal indicator at all time frames, for all markets.


A post from earlier today illustrates why I like the triple moving average cross, showing recent market action on the S&P 500 and Aussie ASX/SPI 200. Either a bullish cross or a bearish cross warns of a possible impending large, swift move. Like most indicators, the hit rate is no better than a coin toss, but the strength lies in a favourable ratio of risk to potential reward. The initial stop goes on the far side of the 40, beyond the most recent price cluster, and I trail a stop if I'm lucky enough to get a winner, though your psychology would dictate your own money management / exit strategy. Yes, money management and exit strategies are more important than entries, but it doesn't hurt to get good entries!

S&P 500 hourly chart - trend line break accompanied by bearish triple MA cross

Earlier today I posted an illustration of the S&P's hourly chart trend line test. Since then the market has broken lower through the trend line, accompanied by a bearish triple moving average cross (4, 18, 40). The triple moving average cross is my favourite entry signal indicator at all time frames, for all markets. Either a bullish cross or a bearish cross warns of a possible impending large, swift move. Like most indicators, the hit rate is no better than a coin toss, but the strength lies in a favourable ratio of risk to potential reward. The initial stop goes on the far side of the 40, beyond the most recent price cluster, and I trail a stop if I'm lucky enough to get a winner, though your psychology would dictate your own money management / exit strategy. Yes, money management and exit strategies are more important than entries, but it doesn't hurt to get good entries!


The following chart of the Aussie ASX/SPI 200 for the past week or so illustrates why I like this indicator, showing two triple crosses, marked 1 and 2.


ASX 200 weekly chart rolling over, trending down on daily

Weekly chart shows the ASX 200 continuing to roll over lower from mid-channel resistance, as I have been saying for several weeks now.


Daily chart shows a new bearish cross by the 18 day moving average down through the 40, following a break of trend line support last week. The trend is now down, so long as today's high is not beaten in the next couple of days, after which .


S&P 500 hourly chart - testing trend line support