April 3, 2012
- in Uncategorized by schooloftrade
Dollar index day trading strategy
The 89 range chart shows the dollar index is trying to move
lower at the price wedge lows and within the AB=CD Pattern. We can FEEL the buyers trying to keep this
price from moving lower and we can see the sloppy price action that has
resulted around the lows of the price wedge.
lower at the price wedge lows and within the AB=CD Pattern. We can FEEL the buyers trying to keep this
price from moving lower and we can see the sloppy price action that has
resulted around the lows of the price wedge.
The 13 range shows us a lot more specifics this
morning; inside day below PHOD and above
the PLOD tells the buyers and sellers have agreed on a range of value. This tells me to trade INSIDE the range we’re
in currently so we’re going to sell the highs and buy the lows of the current
range. We call this a fade-the-breakouts
trading strategy. Bear price channel says the highest percentage trades are
short from the resistance at the highs. Price
wedge is bearish so it too tells me to sell the highs as the highest percentage
trade.
morning; inside day below PHOD and above
the PLOD tells the buyers and sellers have agreed on a range of value. This tells me to trade INSIDE the range we’re
in currently so we’re going to sell the highs and buy the lows of the current
range. We call this a fade-the-breakouts
trading strategy. Bear price channel says the highest percentage trades are
short from the resistance at the highs. Price
wedge is bearish so it too tells me to sell the highs as the highest percentage
trade.
The dollar index tells us the SELL the HIGHS for
the highest percentage trade, and since we use the dollar index correlation
(negative) to plan our trades this morning we know now that the highest
percentage trades will occur with the dollar index at the resistance of the price
wedge and the price channel and then buying the markets we trade. Buying pullbacks or using the 2-step price
reversal on markets such as Crude Oil, euro, E-Mini-Russell, or gold futures.
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| Dollar index day trading strategy |
