Day trading strategy dollar index

The dollar index is pushing new higher-highs this morning
above the trend lines as resistance and the swing-high resistance at
82.450.  As price pushes through both the
swing-high and the double-bottom resistance we know this tells us the bullish
strength to the dollar index, which we will use later in the process as we get to
the know the market personality this morning.

The 55-range chart shows us all the same info from the slower
timeframe courtesy of ‘global drawing objects’ in ninja trader 7 charting
software.  We can draw these on the
slower chart timeframes and they will appear automatically on the faster chart
timeframes to make our jobs easier.  The faster
55-range chart shows us the next bull price channel and the bearish AB=CD
Pattern among other levels of resistance overhead.

 

We finish with the dollar index on the much
faster 21-range chart, which shows us the short-term-trend and the next levels
of support and resistance that we need to tackle next.  We can see the higher-highs and the lower-lows
which tells us that even though we THINK this price will go higher, it shows us
signs of confusion with BOTH the buyers and sellers both failing over the last
2 trading sessions.  This tell us today
that anything can happen. 

The dollar index really only has 3 options for its
price action today.  First, the dollar
index may rise higher.  Second, the dollar
index may trade sideways at the highs. 
Third, the price may stall at this resistance at the highs and may
reverse to move lower again.  With these
three scenarios we can now plan our trades accordingly.  If the dollar index rises we sell retracements,
and if the price falls we buy pullbacks. 
If price sits sideways and sloppy at the highs we too will sit sideways
and sloppy so beware and trade cautiously.