Comparing Market Cycles on two Time Frames

The AUD/USD is presenting two different market cycles across the 30 and 60 minute charts. The first indication of this would be the different chart pattern alerts, and secondly the slight difference in the Initial Trend readings (C and Z).







The trend on the 30 minute chart is a sideways market cycle (1). This is exactly the direction in which the Continuation Triangle chart pattern should be traded. The sideways market shows the congestion/consolidation that the triangle requires to develop and be confirmed. The chart pattern can break in either direction since there is no prevalent trend.

The trend lines (A and B) are the triggers for an entry. The MACD Histogram can be used to confirm the trendline break which would be an "AIM" entry (Autochartist Initial Movement). The slightly higher Initial Trend reading (C) is indicating a chance of a distribution cycle. Therefore the extra confirmation of the MACD Histogram will minimize false breakout entries.

The 60 minute chart has formed a Continuation Rising Wedge. This chart pattern as the name suggests is a trending chart pattern. The trend is up (2) but the Initial Trend reading (Z) is very low which indicates a stall and a possible reversal. The support of the uptrend line (Y) is the decision level for the trade. It will determine whether an Autochartist Retracement/Correction entry will be taken with the direction of the trend or whether an Autochartist Reversal Trade will be taken if the support is broken. If buyers once again step in and carry the pair higher, watch for a potential break up through the resistance line (X).

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