Day trading strategy dollar index

We have a very bullish market this week on the dollar index,
and as of Tuesday morning we noticed how we were making new higher-highs,
higher lows, and pushing through the overhead resistance.  With this bullish dollar index we know other
markets are falling lower and we use the negative correlation between the
rising dollar index and the falling markets we trade most.

We can see a
bullish price channel, inside trading day, and additional double-bottom resistance
overhead.  This dollar index chart will
likely try to push higher and we will be watching to see what happens at this
resistance.

The 55-range
chart shows us just how powerful these AB=CD Pattern reversal-zones can really
be, price moved all the way higher to the exact tick of the lows of the zone
for the bearish AB=CD Pattern.  Now let’s
look for another AB=CD Pattern which may have formed with new higher-highs and
higher-lows.  We look past the current AB=CD
Pattern and we can see a new short term pattern developing which will give us
new highs up to 83.430 if this resistance breaks.  Its good to know where the additional resistance
may be if price moves higher.

The 21-range
chart on the dollar index gives us the most important clues today, helping us
make sense of the bigger picture, slower chart timeframes.  We can see the short term bull price channel,
the AB=CD Pattern and the PHOD making this is a range-bound inside trading day
with a bullish sentiment.

Our plan for
the dollar index is to see the price move higher through this resistance and if
it does we’re selling retracements on markets we trade most.  If the dollar index reverses and falls off
these highs at the AB=CD Pattern reversal zone at 82.845 and goes below the PHOD
82.735 we should see this price tumble lower and then we’re buying pullbacks on
the markets we trade.