dollar index day trading strategy

Our day trading strategy begins with the dollar index because
of its correlation to the markets we trade. 
When the dollar index moves well so do other markets, and when the dollar
index trades sloppy we need to be careful.

The dollar index is trading just above the 55 range chart
major trigger zone, which is why the price has stayed above 78.420.  we can also see a price wedge and inside day,
trading inside the range from Monday.

The faster timeframe 13 range chart on the dollar index shows
us many more trend lines and confirms the inside trading day just below the
highs from Monday’s trading session.  We
know inside day’s tell us a story about what to expect.  Inside day’s tell us to fade the breakouts,
sell the highs, buy the lows, look for the fake-out breakout as price rises or
falls.  We also need to play the highs
and lows of the price wedge because we will expect the highs to hold as resistance
and the lows to hold as support so buy the lows and sell the highs of the price
wedge.

Last-minute we find the bull price channel using the higher
lows and higher highs and it becomes additional resistance if price keeps
rising above the price wedge highs.