February 21, 2012
- in Uncategorized by schooloftrade
Dollar index day trading strategy
We begin our day with the dollar index day trading strategy which
will give us clues for market personality and overall direction today. We know there is a negative dollar
index correlation and we use that to make educated decisions in our day
trading strategy.
will give us clues for market personality and overall direction today. We know there is a negative dollar
index correlation and we use that to make educated decisions in our day
trading strategy.
We begin with the 89range chart, which shows us the big
picture, the most important levels of support and resistance, and in today’s
chart we can see it paints a lot of support below and resistance above a narrow
trading range from 80.245 down to 78.420. we can see many PHOD and PLOD contained
inside this range, and it would be likely for price to stay contained inside
this range as well. We can also draw
trend lines from the major swing lows and major swing-highs to create a narrow
price wedge for which we will expect to see price stay within today and the
week ahead until the market sentiment changes.
picture, the most important levels of support and resistance, and in today’s
chart we can see it paints a lot of support below and resistance above a narrow
trading range from 80.245 down to 78.420. we can see many PHOD and PLOD contained
inside this range, and it would be likely for price to stay contained inside
this range as well. We can also draw
trend lines from the major swing lows and major swing-highs to create a narrow
price wedge for which we will expect to see price stay within today and the
week ahead until the market sentiment changes.
we will assume that the support and resistance on this chart
will be high percentage ‘turning points’ that we will use for trading opportunities
today and throughout the week.
will be high percentage ‘turning points’ that we will use for trading opportunities
today and throughout the week.
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| Dollar Index Day Trading Strategy |
The 55 range chart shows we are trading inside Monday’s
trading range, and the price wedge is easy to find now on this faster timeframe
chart. We will consider the price wedge highs
as key resistance and the price wedge lows as key support and will look for
price reversal trading opportunities at those price levels.
trading range, and the price wedge is easy to find now on this faster timeframe
chart. We will consider the price wedge highs
as key resistance and the price wedge lows as key support and will look for
price reversal trading opportunities at those price levels.
Make sure you have a full 90 days of data loaded on your 13
range chart and you can see the same price wedge displayed on this much-faster
timeframe. Remember the 13range is used
for the short term trend and this will help us pick a directional bias in our
intra-day trading if we can pick up on a short term dollar index trend.
range chart and you can see the same price wedge displayed on this much-faster
timeframe. Remember the 13range is used
for the short term trend and this will help us pick a directional bias in our
intra-day trading if we can pick up on a short term dollar index trend.
We can see from the 13 range chart there is no short term
trend and we have some easy levels of support below us from the price wedge lows
and prior swing lows and the double bottom gives us easy overhead resistance to
make for great potential turning points in the market. The key is no short term
trend, so there is no easy directional bias at this time, however this can
change quickly.
trend and we have some easy levels of support below us from the price wedge lows
and prior swing lows and the double bottom gives us easy overhead resistance to
make for great potential turning points in the market. The key is no short term
trend, so there is no easy directional bias at this time, however this can
change quickly.
