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Thread: Trend of the Day

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#605 (permalink)

07-01-2009, 09:39 AM

Gregory McLeod Gregory McLeod is offline

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Quote:

Originally Posted by Gregory McLeod

As you can see from the two charts that I posted below, the overall daily trend of the AUD/USD is up. This means that we should look to buy dips. There is profit be made trading against the trend however, as traders, we give up our edge and take on more risk as we are not sure when this counter trend drop will finish. Waiting on the side lines for it to end would be prudent. Notice how price fell and broke the red trend line. The magenta circle is where we would initiate a long trade in the direction of the daily trend. Notice how stochastic crossed showing profit taking fading. At the far right look at the Morning Star formation that may lead to more strength.

This is another example of fading the counter-trend move:

Attached Thumbnails

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