August 10, 2012
- in Uncategorized by schooloftrade
Morning Dollar index Checklist:
 |
| DOLLAR INDEX TRADING STRATEGY |
Heat
Map: What is it telling us?
Map: What is it telling us?
The dollar
index is trading in a narrow trading range this morning. The heat map says +0.1% so we need to beware
the
index is trading in a narrow trading range this morning. The heat map says +0.1% so we need to beware
the
OHLC
Analysis:
Analysis:
3 out 4 higher-highs
this says bullish.
this says bullish.
Overnight
Highs & Lows:
Highs & Lows:
We made new higher-highs
late on Thursday, and this morning we saw a fake-out breakout above the PHOD. Now, at 830am EST we see the buyers trying
once again to test the HOD and break us out to new higher-highs. If these buyers fail, this price will drop
most likely down to the LOD, which will give us buying opportunities on the
markets we trade. If price moves to higher-highs
we will sell.
late on Thursday, and this morning we saw a fake-out breakout above the PHOD. Now, at 830am EST we see the buyers trying
once again to test the HOD and break us out to new higher-highs. If these buyers fail, this price will drop
most likely down to the LOD, which will give us buying opportunities on the
markets we trade. If price moves to higher-highs
we will sell.
Are we
inside or outside day today?
inside or outside day today?
We are
transitioning from inside day to outside, however, the buyers aren’t looking
too sure of themselves. If we get stuck
on top of PHOD we know this morning is going to be sideways, narrow, and
range-bound.
transitioning from inside day to outside, however, the buyers aren’t looking
too sure of themselves. If we get stuck
on top of PHOD we know this morning is going to be sideways, narrow, and
range-bound.
What
price-structures do we see?
price-structures do we see?
· AB=CD Pattern is bullish
· Wedge is narrow and in the middle of
the previous day’s range.
the previous day’s range.
· Price channel is not on the 89range
· Sideways Trading Range from 84.245
down to 81.390.
down to 81.390.
· Double-bottom from 90 days ago
provides us with overhead resistance.
provides us with overhead resistance.
Where
will a reversal be likely today?
will a reversal be likely today?
If price
rises the reversal will come at the price wedge highs, however, if price falls,
we will see the reversal below the PHOD.
rises the reversal will come at the price wedge highs, however, if price falls,
we will see the reversal below the PHOD.
What is
our trading plan for today?
our trading plan for today?
We want to
see more market personality first of all, this market is quiet. We need to use the dollar index correlation
if the dollar index rises above the PHOD we know we can sell the markets we
trade. If the dollar index fails to move
higher and the sellers push it lower, now we start buying the contracts we
trade most.
see more market personality first of all, this market is quiet. We need to use the dollar index correlation
if the dollar index rises above the PHOD we know we can sell the markets we
trade. If the dollar index fails to move
higher and the sellers push it lower, now we start buying the contracts we
trade most.
We also know
that if the dollar index trades sideways, narrow, and range-bound, we will need
to locate the short-term trading range on markets such as Crude Oil, E-Mini-Russell,
euro, E-Mini S&P, gold futures and trade those ranges too.
that if the dollar index trades sideways, narrow, and range-bound, we will need
to locate the short-term trading range on markets such as Crude Oil, E-Mini-Russell,
euro, E-Mini S&P, gold futures and trade those ranges too.
