August 7, 2012
- in Uncategorized by schooloftrade
Morning dollar index Checklist:
Heat
Map: What is it telling us?
Map: What is it telling us?
Falling
dollar index this morning -0.2% tells us there’s movement on the dollar index
however, we cant use the correlation until we get below -0.3%.
dollar index this morning -0.2% tells us there’s movement on the dollar index
however, we cant use the correlation until we get below -0.3%.
OHLC
Analysis:
Analysis:
4 for 4
lower-lows and we have indeed broken overnight lows. This is screaming bearish.
lower-lows and we have indeed broken overnight lows. This is screaming bearish.
Are we
inside or outside day today?
inside or outside day today?
Outside day,
below the PLOD, and this market is bearish when below PLOD.
below the PLOD, and this market is bearish when below PLOD.
What
price-structures do we see?
price-structures do we see?
· Trigger-zone above us provides
resistance.
resistance.
· AB=CD Pattern are both bearish and
bullish in both the long and short term.
bullish in both the long and short term.
· Price wedge is bearish and very
narrow.
narrow.
· Price channel is not showing up yet.
· Zigzag requires a price channel.
· Sideways trading ranges marked in the
red rectangle.
red rectangle.
· Double-bottom is there so we have
solid resistance overhead.
solid resistance overhead.
Where
will a reversal be likely today?
will a reversal be likely today?
Most likely
to occur around the PHOD / PLOD, price wedge highs or lows. We can see support at the price wedge lows,
and this is a likely spot for a bounce.
If price rises up we will see the price-reversal at the highs of the price
wedge.
to occur around the PHOD / PLOD, price wedge highs or lows. We can see support at the price wedge lows,
and this is a likely spot for a bounce.
If price rises up we will see the price-reversal at the highs of the price
wedge.
What is
our trading plan for today?
our trading plan for today?
With lower-lows and outside day on the dollar
index we know the dollar index is bearish.
The big question, will this continue?
If it does continue falling lower we will use our wave-pattern-long to
buy with new higher-highs. If the dollar
index stops falling today and reverses to move higher off the support trend
lines we will be able to sell the new higher-highs on other markets using a
wave-pattern-failure or a price-reversal pattern called a 2-Step short.
