March 9, 2012
- in Uncategorized by schooloftrade
Day trading strategy for the dollar index
We begin our day with the dollar index 89 range chart, and
this shows me the major support and resistance levels that I’m going to use for
the best LOCATIONS for trading today. We
can see the LONG term trend, but I’m a day trader, so the short-term-trend is
what I need. I’m going to use this 89
range for the support and resistance and then use the 21 and 13 range to define
the short-term-trend.
The 21 range of the dollar index shows us a lot more detail,
and we quickly find a trend line for support from the swing-low and this
defines a short term price wedge structure.
Price wedge tells us the market personality says fake-out breakout and
range-about. So as price tests the highs
of the price wedge I’m selling, and tests the lows of the price wedge I’m buying. If price moves higher or lower outside the price
wedge I’m trying to fade-the-breakouts by selling as it rises and buying as it
falls.
and we quickly find a trend line for support from the swing-low and this
defines a short term price wedge structure.
Price wedge tells us the market personality says fake-out breakout and
range-about. So as price tests the highs
of the price wedge I’m selling, and tests the lows of the price wedge I’m buying. If price moves higher or lower outside the price
wedge I’m trying to fade-the-breakouts by selling as it rises and buying as it
falls.
The most important clue we see this morning is the dollar
index price wedge inside the range from Thursday and in the middle of the
current range. This tells me there is NO
confidence in the dollar index which means other markets will also be likely to
slop sideways.
index price wedge inside the range from Thursday and in the middle of the
current range. This tells me there is NO
confidence in the dollar index which means other markets will also be likely to
slop sideways.
