Detecting Profitable Patterns For Active Traders
Successful trading without having to be right about the underlying market direction
TUESDAY SEPTEMBER 22, 2009 06:43 ET
The Australian dollar performed exactly as anticipated in yesterday's column by bouncing off the green cloud as can be seen on the chart below. Another key test is now about to be faced as the currency attempts to move back above the trend-line through the lows which had previously acted as support since the beginning of September and which could now potentially pose a resistance threshold.
The RSI values on the 4 hour chart should be monitored during trading today for negative divergences and there is also the possibility that a failure to take on the 0.8775 level seen on September 17th could signal a possible double top formation, at least in the near term