May 15, 2012
- in Uncategorized by schooloftrade
Dollar index day trading strategy
We can see a bear price channel alongwith the short term bear price wedge and the trigger-zone resistance in the red
rectangle around 80.500. this is
considered a transition area, and tells us there will be resistance overhead
along with a possible slowdown in price, followed by sideways chop, and then a
full reversal as prices fall back lower.
This is the dollar index so we use a negative correlation and we will
use this correlation to plan our trades accordingly.
We dig a little deeper into the advancedprice-structures on this 89 range chart and we can see the bear price wedge is
consider an advanced price-structures because the fib ratios are in perfect alignment. This tells us there is a significant resistance
at this 80.700 area, and then if price keeps moving higher it tells us just how
STRONG this bull rally is going to be this week on the dollar index. In all reality this resistance should have
enough strength to hold this price down and give us a full reversal at this resistance.
Open the faster 13-range chart
and you can see exactly what we would expect, a rising bull price channel over
the past week, and then today we can see this major resistance is playing into
the sideways range, the slow speed, and we will look for signs of the sellers
making new lower-lows and this price getting ready to drop.
and you can see exactly what we would expect, a rising bull price channel over
the past week, and then today we can see this major resistance is playing into
the sideways range, the slow speed, and we will look for signs of the sellers
making new lower-lows and this price getting ready to drop.
Now it’s our job as traders to anticipate this dollar
index resistance and how it may give us trading opportunities.
