May 3, 2012
- in Uncategorized by schooloftrade
Dollar index day trading strategy
Dollar index heat map this
morning shows us a +0.1% so the dollar index isn’t moving very quickly at 800am
EST however we know this rising dollar index will give us selling opportunities
if it keeps moving higher. We want to
see greater than 0.2% for the volatility in order to have the best trading
opportunities.
morning shows us a +0.1% so the dollar index isn’t moving very quickly at 800am
EST however we know this rising dollar index will give us selling opportunities
if it keeps moving higher. We want to
see greater than 0.2% for the volatility in order to have the best trading
opportunities.
The 89 range chart on the dollarindex shows us smack in the MIDDLE of the major price wedge structure and
testing the PHOD which confirms the rising heat map which we checked
first. If the dollar index moves above
the PHOD 1 of three things is likely to happen.
First, price may trade higher above the PHOD and then we buy pullbacks,
or the price can move sideways and we sit on hands, or the price could fall
back below the PHOD and then we sell retracements.
So plan for all three different
scenarios; if the dollar index rises
higher above the PHOD we will sell retracements on the markets we trade using
the dollar index. If the dollar index trades
sideways we need to be very careful not to force lower-percentage trades with
no market personality. If the dollar
index bounces off this resistance and goes back lower, we will then move to buy
pullbacks on the markets such as Crude Oil, euro, E-Mini-Russell, and gold
futures.
scenarios; if the dollar index rises
higher above the PHOD we will sell retracements on the markets we trade using
the dollar index. If the dollar index trades
sideways we need to be very careful not to force lower-percentage trades with
no market personality. If the dollar
index bounces off this resistance and goes back lower, we will then move to buy
pullbacks on the markets such as Crude Oil, euro, E-Mini-Russell, and gold
futures.
This is a highly transitional
area on the dollar index 21-range chart.
We can see the bearish price channel, the PHOD is right above us, and
the ‘line in the sand’ of 79.415 is the swing-high that creates the location
where the buyers and sellers will compete over control. If price moves above the 79.415 the sellers have
failed, the buyers are in control, and the dollar index will rise most likely
to the AB=CD zone above the next level of resistance overhead at 79.680 area.
area on the dollar index 21-range chart.
We can see the bearish price channel, the PHOD is right above us, and
the ‘line in the sand’ of 79.415 is the swing-high that creates the location
where the buyers and sellers will compete over control. If price moves above the 79.415 the sellers have
failed, the buyers are in control, and the dollar index will rise most likely
to the AB=CD zone above the next level of resistance overhead at 79.680 area.
If this resistance holds on the dollar index at PHOD
the buyers will have failed and price will tumble off these highs and move back
down into the range below us. Look for
79.200 swing-low to be tested if these buyers fail.
