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Dollar index day trading strategy
map says 0.0% at 800am EST so we know this tells us that most of the market
personality will be sloppy and narrow-range until this gets above 0.2%. We can also assume that the rest of the markets
will also be sloppy and sluggish when the dollar index is flat and sideways.
are selling retracements with new lower-lows, and if the dollar index is
falling, we are buying pullbacks with new higher-highs. If the dollar index is not doing EITHER,
moving sideways, we need to beware of getting chopped-up by narrow trading
ranges, so sell the highs and buy the lows when the dollar index is flat.
lows of the price wedge on the 89-range chart tells us this major support will
likely lead to rising prices this morning on the dollar index. We may see price move lower, and that will
take a lot of strength from the sellers, and if it does, this is going to be a
sloppy day. Imagine a brick wall and the
dollar index is trying to break through that very solid brick wall. It will take a few tries to push new lower-lows
and the price wedge price structure almost ALWAYS results in major support and
the price will rise off these lows.
Keep an eye on the PLOD, if we break above the PLOD
the sellers have failed and price will quickly move higher trying to test the PHOD. We will look for selling retracements when
the dollar index moves above the PLOD using the negative correlation.