Dollar Index Pops while Crude Oil and Gold Drops Day Trading Strategy

830am EST

– The dollar index is trading in the middle of its sideways trading
– Its also now in the narrowest portion of the wedge pattern, so looking very narrow and sluggish
– We know that sideways dollar = sideways markets on crude, gold, euro, Russell, etc.
– Use your price alert indicator to mark the highs and the lows
– When the alarm goes off, you know it’s a better time to be looking for trading patterns.
– Trade balance news @ 830am was higher than expected, so lets see how the markets react.

– Dollar average true range is rising after the news, lets hope it continues to rise b/c the ATR on the dollar is also something that will directly affect the profitability our trading today.

– The wider the ranges on the dollar, the wider the ranges on everything else, so look for RISING ATR as a sign of good trades coming.

– The markets are very sluggish on the holiday season Friday ahead of the end of the year

840am est

– Crude oil futures are trading sideways

945am est

– Waiting on the 955 consumer confidence news
– We have the dollar still in the middle of the price wedge
– Average true range is falling on the dollar
– Very concerned over speed of the tape
– Very concerned over lack of movement

– It appears that the drop we saw at 845 is now turning into a bounce back up into the previous sideways range.

– Trying to tell if the gold buyers or sellers are in control

o Are we trading sideways at these new lows?
o Or are we simply reversing off the lows and going to back up into the HOD?

– We are trading sideways now at the PREVIOUS LOD, which is a transitional area on our charts

o Above PLOD = bulls are in charge
o Below PLOD = bears are in charge

GOLD TRADES:

– 955 NEWS, consumer confidence came out higher than expected
– Dollar bullish
– Gold bearish
– Sell gold
– Dollar had lots of room to run
– Dollar goal was to test the highs of the price wedge

1100am est

– Friday mornings are expected to be an early close, so we’re watching the pace of tape and other indicators to tell us when the market is slowing down.

– We’ve had a great day so far, lots of winning positions, and we want to protect that capital
– Pace of tape is RED across the markets we trade

Click Here To Review Our Auto Trader Results From This Morning