March 6, 2012
- in Uncategorized by schooloftrade
Dollar Index Futures; Professional day trading strategy
 |
| Dollar Index 89 Range |
The dollar index has broken its major trend line resistance
and the PHOD of 79.640 as it pulls higher this morning moving towards the
80.000 level. We can expect the dollar
index to run into resistance as it tries to move higher, so we look for clues
this morning on the tape. Will the dollar
index keep moving higher to 80.000 and higher to 80.240 or will it tumble back
down under its own weight back below the PHOD.
Members, we know that this is a big clue if it fails and goes back below
the PHOD so we’re looking for the failure to help us with buying opportunities
on the markets we trade most. If the dollar
index keeps moving higher we look to sell using the negative dollar index correlation,
and if the dollar index falls back down we then look for buying opportunities
at the lows and support levels below us on Crude Oil, euro, E-Mini-Russell and gold
futures.
and the PHOD of 79.640 as it pulls higher this morning moving towards the
80.000 level. We can expect the dollar
index to run into resistance as it tries to move higher, so we look for clues
this morning on the tape. Will the dollar
index keep moving higher to 80.000 and higher to 80.240 or will it tumble back
down under its own weight back below the PHOD.
Members, we know that this is a big clue if it fails and goes back below
the PHOD so we’re looking for the failure to help us with buying opportunities
on the markets we trade most. If the dollar
index keeps moving higher we look to sell using the negative dollar index correlation,
and if the dollar index falls back down we then look for buying opportunities
at the lows and support levels below us on Crude Oil, euro, E-Mini-Russell and gold
futures.
 |
| Dollar Index 55 range |
Further investigation using the 55 range chart shows us
another bear price channel to keep an eye on for additional overhead
resistance. You can see I drew the price
channel from the recent swing-lows and it lines up very nicely, giving me
confidence there will be additional resistance just below 80.000 overhead on
the dollar index. Remember, we look for
the best trading opportunities to show up when the dollar index is trading at
major support and resistance levels.
another bear price channel to keep an eye on for additional overhead
resistance. You can see I drew the price
channel from the recent swing-lows and it lines up very nicely, giving me
confidence there will be additional resistance just below 80.000 overhead on
the dollar index. Remember, we look for
the best trading opportunities to show up when the dollar index is trading at
major support and resistance levels.
 |
| Dollar Index 13 Range |
The fastest 13-range chart on the dollar index is used to
find the short term trend, and any minor support and resistance levels we can
look for reversals in the dollar index. We
can see the same bull price channel we’ve been using for a week now, along with
the PHOD and PLOD which we are trading above this morning. We can see a decent uptrend on the dollar
index so we know there will be a slight bias to the SHORT side this morning for
the highest percentage trades if this trend continues. Remember the short-term-trend can AND WILL
change often this morning so keep an eye on the trigger-line slope, higher-highs
and lower-lows in price for the best clues.
Remember we want to look for trades when the dollar index tests support
and resistance which we can see marked easily on this chart.
find the short term trend, and any minor support and resistance levels we can
look for reversals in the dollar index. We
can see the same bull price channel we’ve been using for a week now, along with
the PHOD and PLOD which we are trading above this morning. We can see a decent uptrend on the dollar
index so we know there will be a slight bias to the SHORT side this morning for
the highest percentage trades if this trend continues. Remember the short-term-trend can AND WILL
change often this morning so keep an eye on the trigger-line slope, higher-highs
and lower-lows in price for the best clues.
Remember we want to look for trades when the dollar index tests support
and resistance which we can see marked easily on this chart.
