February 24, 2012
- in Uncategorized by schooloftrade
Dollar index day trading strategy
The dollar index day trading strategy uses multiple
timeframes to locate the most important levels of support and resistance along
with attempting to define the short term trend.
timeframes to locate the most important levels of support and resistance along
with attempting to define the short term trend.
This morning we notice the dollar index is falling sharply
into the major support area on the 89 range chart which we call our trigger-zone. Notice that we have multiple levels of
support below us, which will be used a key turning points for the dollar index and
thus we will be looking for the best trading opportunities as price approaches
these levels.
into the major support area on the 89 range chart which we call our trigger-zone. Notice that we have multiple levels of
support below us, which will be used a key turning points for the dollar index and
thus we will be looking for the best trading opportunities as price approaches
these levels.
Moving to a faster timeframe we can see that the 13 range
chart shows 2 price structure clues for additional support below us. First, the bear price channel can be found
easily and we are at the lows of the price channel which is considered
support. Second, we can see the AB=CD
Pattern and the reversal-zone starts at 78.515 which is also considered
support.
chart shows 2 price structure clues for additional support below us. First, the bear price channel can be found
easily and we are at the lows of the price channel which is considered
support. Second, we can see the AB=CD
Pattern and the reversal-zone starts at 78.515 which is also considered
support.
These two timeframes tell me to expect the dollar
index to fall to support and I will look for price to reverse off this support
and move higher, at which time I’m looking for selling opportunities on the
markets we trade most.
We have a short term trend down on the Dollar which makes us think of buyign pullbacks on crude, euro, gold, russell, etc, however the AB=CD Pattern gives us reason to think that price will reverse and move higher so we know this area is ripe for a reversal.
Look for the dollar to react around these support levels and we look forward to trading the reaction.
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| Dollar Index Day Trading Strategy |
