March 30, 2012
- in Uncategorized by schooloftrade
Dollar index day trading strategy
The day trading strategy for the dollar index this morning
uses the heat map from our morning prep which tells us the dollar index is
dropping this morning, so we keep that in mind to make sure we trade against
any dollar index trends. We will be looking
for the LONG trades this morning as the dollar index has moved lower.
uses the heat map from our morning prep which tells us the dollar index is
dropping this morning, so we keep that in mind to make sure we trade against
any dollar index trends. We will be looking
for the LONG trades this morning as the dollar index has moved lower.
The 89 range chart shows us a LOT of price structures; Long
term bull price channel, the medium term bear price channel (green), price
wedge which has recently been broken to the downside, we have a major AB=CD
Pattern, and we see the Inside Day turned Outside day as the buyers fail and
the sellers push it lower.
term bull price channel, the medium term bear price channel (green), price
wedge which has recently been broken to the downside, we have a major AB=CD
Pattern, and we see the Inside Day turned Outside day as the buyers fail and
the sellers push it lower.
Knowing the following price structures exist, now we can
make educated decisions based on what we see.
We can see the lows of the price wedge are broken so this tells us the
sellers are VERY strong, and when we break the PLOD we also know the buyers are
no longer to be in control, and the sellers are in control over the price. If price moves lower, below the PLOD we want
to sell retracements on the dollar index expecting lower lows. We wont trade the dollar index, but we will
use these lower-lows as a sign to buy pullbacks with higher-highs on the
markets we do trade, such as Crude Oil, E-Mini-Russell, euro, and gold futures.
make educated decisions based on what we see.
We can see the lows of the price wedge are broken so this tells us the
sellers are VERY strong, and when we break the PLOD we also know the buyers are
no longer to be in control, and the sellers are in control over the price. If price moves lower, below the PLOD we want
to sell retracements on the dollar index expecting lower lows. We wont trade the dollar index, but we will
use these lower-lows as a sign to buy pullbacks with higher-highs on the
markets we do trade, such as Crude Oil, E-Mini-Russell, euro, and gold futures.
One big concern today for this dollar index is to see the dollar
index slop around the PLOD. We know that
today may have low volume, and many of major traders may be out of the market
this morning, and this may end up being the biggest challenge. So get us AWAY from the PLOD to find the best
trades today.
index slop around the PLOD. We know that
today may have low volume, and many of major traders may be out of the market
this morning, and this may end up being the biggest challenge. So get us AWAY from the PLOD to find the best
trades today.
Our day trading strategy this morning says that
if the dollar index sits on top of the PLOD we will sit on our hands and
wait. If the dollar index moves higher
it will then be sucked up into the price wedge above it and price will rise to
the PHOD 79.530 and we will then sell retracements on the markets we trade
using the negative correlation. If price
moves lower this morning, further away from the PLOD we will then be confident
that price on the dollar index is headed to 78.525 the next support below us on
the 89range chart, and if the dollar index falls we will know to buy pullbacks on
the markets we trade.
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Dollar index day trading strategy |
