August 9, 2012
- in Uncategorized by schooloftrade
Morning dollar index Checklist:
Heat
Map: What is it telling us?
Map: What is it telling us?
Dollar index
is bullish according to our heat map. A reading of 0.3% tells us we can also
use the dollar index correlation.
is bullish according to our heat map. A reading of 0.3% tells us we can also
use the dollar index correlation.
OHLC
Analysis:
Analysis:
3 for 4 higher-highs
on the 30-minute OHLC chart.
on the 30-minute OHLC chart.
Overnight
Highs & Lows:
Highs & Lows:
We have successfully
broken and held above the highs from Wednesday and the overnight highs from the
London open.
broken and held above the highs from Wednesday and the overnight highs from the
London open.
Are we
inside or outside day today?
inside or outside day today?
We are
outside day, above the PHOD and this tells us the buyers see value in higher
prices. And if the buyers see value we
may just want to trade along with them!
Buying with wave-pattern-long with new higher-highs when above PHOD. Remember to use the dollar index negative
correlation when it comes to using this structure we see today.
outside day, above the PHOD and this tells us the buyers see value in higher
prices. And if the buyers see value we
may just want to trade along with them!
Buying with wave-pattern-long with new higher-highs when above PHOD. Remember to use the dollar index negative
correlation when it comes to using this structure we see today.
What
price-structures do we see?
· Trigger-zone are overhead resistance
· AB=CD Pattern is bullish below us as support.
· Price wedges seem to be everyone on
this chart
this chart
· Trading Ranges from 84.245 down to
81.390
81.390
· Double-bottom is a few weeks old, and
has provide resistance which has contained the buyers at the 84.245 range
highs.
has provide resistance which has contained the buyers at the 84.245 range
highs.
Where
will a reversal be likely today?
will a reversal be likely today?
At the highs
or the lows of this price wedge we will most likely get the price-reversal.
or the lows of this price wedge we will most likely get the price-reversal.
What is
our trading plan for today?
our trading plan for today?
We are going
to use the dollar index correlation to make educated decisions and increase the
odds of our success on each trade. If
the dollar index falls lower and goes back below the PHOD we know the sellers
are in charge and we will buy other markets with a falling dollar index. If the dollar index tests the lows of the price
wedge we then expect a price-reversal from the dollar index and this will lead
to rising dollar index and falling markets everywhere else so we will be
selling short.
to use the dollar index correlation to make educated decisions and increase the
odds of our success on each trade. If
the dollar index falls lower and goes back below the PHOD we know the sellers
are in charge and we will buy other markets with a falling dollar index. If the dollar index tests the lows of the price
wedge we then expect a price-reversal from the dollar index and this will lead
to rising dollar index and falling markets everywhere else so we will be
selling short.
If the dollar index keeps moving higher,
according to the heat map we are supposed to be bullish, and if we can get new higher-highs
on the dollar index we will keep selling with wave-pattern-short on the markets
we trade such as Crude Oil, E-Mini-Russell, euro, natural gas, bonds, E-Mini
S&P, gold futures.
