How Markets Move / Week Ending 8/14
The TrendMap below records the current trend in place for each time frame for that individual market. Green represents an up-trend while red means a down-trend. There is a myriad of information packed into the Map, but one that stands out for me is the shift on the current AUDUSD Daily chart to bearish — AUDUSD has been the leader on the up-side for the currency complex.
Trend shifts occur over time and should always be monitored — and should not always be taken blindly as trade signals. The most influential trends are on the highest time frames which take weeks and even months to shift as momentum wanes and price pauses and then reverses. Likewise trends in stock indices, commodities, and currencies in particular, stay in place longer than even many experienced traders gauge.
Jay Norris
www.trading-u.com
jnorris@brewerinvestmentgroup.com
DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment.