May 7, 2012
Dollar index day trading strategy
The dollar index has been tradinglower this morning after making a new swing-high overnight and then dropping
back down off those highs. This morning
our heat map is telling is to look for a rising dollar index, which doesn’t match
what we’re seeing on the chart.
This leadsus to believe that either the dollar index volume is too low to be consistent
this morning, or the dollar index may have just recently changed its direction
and the 15-minute delay on the heat map needs to up-date. Either way we need to look for further clues
before we can confidently use the dollar index correlation this morning.
We can see the PHOD below us, and that will be a
magnet, so expect price to keep falling lower this morning down to the 79.615
level the PHOD. With a falling dollar
index we are buying pullbacks using the negative correlation.
