dollar index day trading strategy

The US Dollar Index day trading strategy uses the negative correlation as our main principle and we look for major turning points (support and resistance) along with clues for the short term trend to make educated trading decisions.

Today we can see the dollar on the 55 range chart has major trigger zone support below it, along with a price wedge and inside trading day.  we will use these levels of support and resistance as primary turning points in the market so look for trades to occur with higher percentages when the dollar index is trading near the levels of support and resistance on this 55 range chart.  we may find some more possible turning points on the faster 13 range chart posted below however we know these levels will be more important.

Dollar Index Dy Trading Strategy

The Dollar index 13 range chart shows us a lot more price detail, but we can see much of the same price structure and market personality we located on the slower timeframe posted above.  Ive marked the major trend lines in a thicker green color to illustrate where the major trend lines are going to be and you can see a narrower price wedge has occured within the major wedge.  Look for the price to change directions, reverse, around the levels of support below and resistance above, and try to avoid trading when the dollar index is trading in the middle of the range around 78.940.