Day trading strategy dollar index

We use the 144-range chart to get us started with the plan of
attack on the dollar index this morning at 730am EST.  this is our slowest timeframe and it shows us
the bull price channel, the AB=CD Pattern pattern and the double-bottom which all
have provided overhead resistance.  This 144-range
chart does an great job at showing us the BIG picture, where we are in the big
picture, but we need to use a faster timeframe to zoom in and get the specifics
from a faster chart timeframe.

We use the 21-range chart on the dollar index to get a lot
more details, and we use these details to find the high-percentage trades this
morning using the dollar index correlation. 
This chart timeframe shows me the short term bull price channel has been
recently broken at the lows by a sideways and sloppy bit of price action.  We can see the most recent price action makes
it seem that the bearish AB=CD Pattern is holding as major overhead resistance,
and the buyers and sellers may be confused as far as where they want to go
next.  If you also draw a new trend line
from the ‘C’ point to the most recent swing-low at the PLOD 82.400 we can see
the short term price wedge has developed as well.  A sideways price wedge we saw on Monday and
today it looks more like a new bear price channel, but either way you look at
it, we can tell this dollar index is looking for clues. 

Our plan of attack this morning using the dollar index correlation
is to sell as the dollar index rises, buy as the dollar index falls, and if the
dollar index trades sideways we will look for a sideways range on other markets
trading within as well.  The dollar index
can give us 1 of 3 scenarios today.  First,
the dollar index can go higher this will result in falling prices and we sell
accordingly.  Second, the dollar index may
go lower, and if that happens we look for buying opportunities.  And third, the dollar index may not have
confidence to move higher or lower, and it may trade sideways.  If the dollar index trades sideways don’t be afraid
to buy the lows and sell the highs of the ranges we see on markets such Crude
Oil, E-Mini-Russell, euro, and gold futures.