July 14, 2011
- in Uncategorized by schooloftrade
Inside Day on the US Dollar Index gives profitable clues
Inside Day on the US Dollar
Inside Days = trade inside the range (buy lows, sell the highs, expect a fake-out breakout)
Outside Days = trade outside the range (buying pullbacks with new highs, selling retracements with new lows, looking for breakouts
The dollar is a correlation tool, so we don’t actually trade the dollar, we use it as a guide.
Dollar Inside Day = look to trade inside the current range on the markets we trade most.
Crude oil falls, I want to buy the lows, rather than looking to sell new lows.
BMT Price Magnet strategy
The BMT (big money trigger) is a certain price magnet, and in low volume you can easily expect the BMT to be tested.
Im always looking to avoid trading at the BMT, and look to enter trades far above, or far below the BMT with the goal of price testing the BMT for a large profit.
