April 17, 2012
- in Uncategorized by schooloftrade
Day trading strategy for dollar index correlation
The dollar index this morning
looks like its trapped inside of a closet, lots of support below and resistance
above with flat trigger-lines, flat BMT, and in the middle of the very clear
trading ranges. Take a picture, this is
as bad as it can get on the dollar index as far as LOCATION. We’re trading on top of the BMT so that’s most
important, and then the price wedge tells us the market personality that’s caused
this price to go sideways. This dollar
index needs to move out of this range either higher or lower before we get the
best trading opportunities.
looks like its trapped inside of a closet, lots of support below and resistance
above with flat trigger-lines, flat BMT, and in the middle of the very clear
trading ranges. Take a picture, this is
as bad as it can get on the dollar index as far as LOCATION. We’re trading on top of the BMT so that’s most
important, and then the price wedge tells us the market personality that’s caused
this price to go sideways. This dollar
index needs to move out of this range either higher or lower before we get the
best trading opportunities.
The heat map at 800am EST says to sit on hands
with the dollar index performance being very narrow and flat. We need to be patient this morning to wait for
the heat map to improve.
with the dollar index performance being very narrow and flat. We need to be patient this morning to wait for
the heat map to improve.
Three possible scenarios on the dollar index this morning:
1. Price Moves lower, this will be tough with lots of support, which means prices will have a hard time rising with the negative correlation.
2. Price may move sideways, and if it does the markets we trade will also trade sideways,
3. Price moves higher, lots of open room above for higher prices, which means lots of possible selling opportunities on the markets we trade most.
