Sunday, March 22, 2009

I found a good negative divergence

Price action is always important. But I also like to look at volume, at least with regards to confirming a trend. As traders, we should all want to be able to see 'others' start to feel the way we do (not everybody, because then we have a contrarian play.)

So check out the negative divergence in the daily Ozzie/USD chart below. The relative strength in the pair was just as much as the relative strength in the previous rise in early January (clicking on the chart gives you a clearer view):



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