The best tool I've come across - the compression and expansion you see on both sets of averages gives an insight that you don't get from other methods in my experience (I've been trading 7 years, and have tried a lot of other methods!)
Check out the GMMA on 1 hour forex charts - seems to be a natural fit, though they can be used on any time frame. Probably best for retracements though they can be used very profitably for reversals, but that requires more experience, I think.
For more info see his book 'Trend trading'.