Day trading strategy dollar index

Not much has changed from earlier this week on the dollar
index chart.  We can see from the 144-range
chart that we’re at the price channel highs and have been trading sideways for
the past few days.  We can assume that when
ANY market sits at new higher-highs and then trades sideways is looking for
more answers…do they want to go higher or will the price collapse and fall back
down?

The 21-range chart on the dollar index is our faster
timeframe and we see the short-term-trend (if any) along with the next few
levels of support and resistance that we may need to be aware of.  On this specific day on the dollar index we
do NOT have a short-term-trend higher or lower, the trend is sideways.  We can also see a price wedge and when we
find ourselves inside the range from the previous day a price wedge is the
biggest clue we get.

When we have a price wedge we get a big clue for
market personality.  We know to expect fake-out
breakouts at the new highs or lows, and we know to buy the lows as support and
sell the highs as resistance.  Mamma said
not to fiddle with the middle of the price wedge because that’s where the most
challenging price action will be.  If the
dollar index market personality is fake-out breakout we can assume (until we
see differently) that the markets we trade will be very similar.