March 28, 2012
- in Uncategorized by schooloftrade
Dollar index day trading strategy
The dollar index is trading in the same location from Tuesday
morning, which is at the lows of the major price wedge price structure and in
the middle of the bear price channel. We
can see the AB=CD pattern which will affect us later down the road, and for
today we focus on the price wedge.
morning, which is at the lows of the major price wedge price structure and in
the middle of the bear price channel. We
can see the AB=CD pattern which will affect us later down the road, and for
today we focus on the price wedge.
With the dollar index sitting on support, we expect the
price will rise, and when the dollar index rises it causes everything else to
fall lower. So with the dollar index at
support we know that selling at resistance on other markets will be the higher
percentage trades today.
price will rise, and when the dollar index rises it causes everything else to
fall lower. So with the dollar index at
support we know that selling at resistance on other markets will be the higher
percentage trades today.
We also need to check the short term trend, if there is a
bullish short-term-trend we have even more confidence in the short side of
trades today, but without a short-term-trend we may have to sit on hands and
wait for the dollar index to move off these lows, considering its been sitting
there for more than 24 hours.
bullish short-term-trend we have even more confidence in the short side of
trades today, but without a short-term-trend we may have to sit on hands and
wait for the dollar index to move off these lows, considering its been sitting
there for more than 24 hours.
The lack of short-term-trend on the 13range chart of the dollar
index tells us there is no distinct directional bias, so as price rises I will
sell the resistance and as price falls I will buy the support. This short-term-trend can easily change so
our job is never done when it comes to keeping an eye on the dollar index.
index tells us there is no distinct directional bias, so as price rises I will
sell the resistance and as price falls I will buy the support. This short-term-trend can easily change so
our job is never done when it comes to keeping an eye on the dollar index.
Our two jobs for the dollar index today are to
trade against the short-term-trend and to look for the best opportunities
around transitional or ‘turning points’ in the market. Turning points are nothing more than support and
resistance and around each level we look for the market traders to react, which
gives us clues to where we need to be trading.
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| Dollar Index Trading Strategy |
