Day trading strategy dollar index

The first thing we look for is the directional bias on the
heat map.  We can see the Dollar index is
trading higher at 0.1% so this is a very narrow range we will see from the dollar
index so the rest of the markets we trade are assumed to be narrow ranges as
well.  Ideally we want to trade when the dollar
index heat map is greater than 0.2 or less than -0.2 in its relative
performance.  We need to wait patiently,
keeping an eye on the market personality of the dollar index and then look for
the dollar index to start moving MORE before we take our first trade.

The dollar index keeps moving lower just as expected, below
the lows from last week and heading towards the completion of the bullish AB=CD
Pattern. The price wedge structure is going to be the most important clue to
consider on this chart.  In the middle of
the price wedge we have flat trigger-line and BMT to be concerned with, so if
price sits on top of the BMT.  We can
expect sloppy price action in the middle of this price wedge, and the heat map
also confirms that it is indeed a very narrow range at 800am EST.

The best trading opportunities today will come when the dollar
index moves higher to the price wedge highs or lower to the price wedge lows.  Ideally, we’d love to see price around the PHOD
and the PLOD because that will get the buyers and sellers competing for
control, giving us more volatility.

The 13range chart shows us the bear price channel and the
major AB=CD Pattern that is now setting up after we successful held the support
in the major trigger-zone around 79.500 area last night.  This tells me that price SHOULD move higher,
so if it does NOT move higher we know the market is weak, and we will trade accordingly. 

Lastly, and most importantly, we find the short term trigger-zone
as resistance above us going from the major B-point down the major
C-Point.  We also see a short term AB=CD
pattern which almost guarantees this price is going to test that AB=CD Reversal
Zone overhead.