February 23, 2012
- in Uncategorized by schooloftrade
Dollar index day trading strategy
DOLLAR INDEX day trading strategy starts with the 89 range
chart because it shows us the most important price levels and support and
resistance. First thing we notice on the
89 range is the price wedge and that we are in the middle of the price wedge,
so this is considered a RED FLAG. When
the dollar index is in the middle of a range we know there is lack of direction
this morning and we will see the same lack of direction in the markets we
trade.
chart because it shows us the most important price levels and support and
resistance. First thing we notice on the
89 range is the price wedge and that we are in the middle of the price wedge,
so this is considered a RED FLAG. When
the dollar index is in the middle of a range we know there is lack of direction
this morning and we will see the same lack of direction in the markets we
trade.
Price wedge tells me there is indecision in the market so
fade the breakouts, sell as price moves higher and buy as price moves lower,
avoiding the middle of the ranges.
fade the breakouts, sell as price moves higher and buy as price moves lower,
avoiding the middle of the ranges.
The faster 13 range chart of the dollar index has
a very important purpose, to locate the short term trend and the next turning
points in the market. The short term
trend on the dollar index as of 800am EST is flat, no trend, we see a flat trigger-line
and we see a higher-highs and a lower-lows.
Without a trend there is no direction bias using the dollar index correlation. We also know the ‘turning points’ on this
chart will be where the highest percentage trades will occur today so be
patient for the dollar index to test the highs and lows and look for entries
then.
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| Dollar Index Day Trading Strategy |
