Dollar index day trading strategy

Dollar index trading at the lows of the major price wedge,
and we can see we’re trading inside the range from Wednesday so we expect price
can go in either direction. The 89 range
chart tells me we have MAJOR support around 79.000. this support on the dollar index will be
considered resistance on the markets we trade today.

The 13 range on the dollar index shows a strong bull price
channel and we’ve added a few variations to the price channel so we don’t miss
anything unforeseen in the future. It’s important
that we mark up both channels so we can see all the support and resistance.

The 13 range also shows us potential turning points, or support
and resistance levels above and below where we expect traders to REACT. As price approaches resistance traders may
start buying and push it through resistance or the market may collapse and the resistance
may hold. Either way, when the dollar
index at support and resistance we know SOMETHING is going to happen, so we’re
always keeping a close eye on the dollar index support and resistance.

The heat map on the dollar index at 800am EST shows the dollar
index moving HIGHER, and when the dollar index is moving higher we can plan on
trading short as the higher percentage trade.

Our plan today, when the dollar index is at resistance
we’re looking for short term buying opportunities using patterns such as a
2-step long entry pattern. While the dollar
index is moving higher, or at support, we will be looking for selling
opportunities using wave pattern short, 2-step pattern short, and breaker
pattern short.