March 27, 2012
- in Uncategorized by schooloftrade
Day trading strategy dollar index
The dollar index trading lower this morning inside the
bearish price channel and we have a bear price wedge structure now holding as
support. We are at the lows of the price
wedge, so price is expected to rise higher off this support.
bearish price channel and we have a bear price wedge structure now holding as
support. We are at the lows of the price
wedge, so price is expected to rise higher off this support.
The price wedge gives us simple trading clues, to buy the
lows at support and sell the highs at resistance for the best trading
opportunities today. While the dollar
index is moving higher off support (at the lows) we use the negative dollar index
correlation to look for selling opportunities on the markets we trade. All of our favorite markets are trading at
their range highs this morning, so this will be an excellent time to look for reversals.
lows at support and sell the highs at resistance for the best trading
opportunities today. While the dollar
index is moving higher off support (at the lows) we use the negative dollar index
correlation to look for selling opportunities on the markets we trade. All of our favorite markets are trading at
their range highs this morning, so this will be an excellent time to look for reversals.
Upon further investigation we notice that if the
dollar index moves lower, breaking the price wedge support we then will see an
AB=CD pattern develop, which means the dollar index will keep moving lower,
causing markets to keep rising higher, and giving us the opposite of what we
expected with the price wedge. Looking for
more buying opportunities if this dollar index moves lower below PLOD.
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| Dollar Index Trading Strategy |
