August 21, 2012
- in Uncategorized by schooloftrade
Morning Dollar Index Checklist:
 |
| DOLLAR INDEX CHART PREP |
Heat
Map: What is it telling us?
Map: What is it telling us?
We see a
negative 0.4% on the heat map which tells us we can indeed use the dollar index
correlation, and we will assume this dollar is bearish, so we are bullish, until something changes.
negative 0.4% on the heat map which tells us we can indeed use the dollar index
correlation, and we will assume this dollar is bearish, so we are bullish, until something changes.
OHLC
Analysis:
Analysis:
We can see
the buyers failed, the sellers took over control, this market is clearly
bearish, however, such a drastic move lower is always going to be suspicious for
a potential short-covering rally.
the buyers failed, the sellers took over control, this market is clearly
bearish, however, such a drastic move lower is always going to be suspicious for
a potential short-covering rally.
Overnight
Highs & Lows:
Highs & Lows:
We broke below the
overnight lows and we have also
broken the major support below us.
overnight lows and we have also
broken the major support below us.
Are we
inside or outside day today?
inside or outside day today?
We are
outside day below the PLOD so we are bearish.
Below
the plod we are selling retracements on the dollar, and looking for buying
opportunities on the markets we trade with this correlation.
outside day below the PLOD so we are bearish.
Below
the plod we are selling retracements on the dollar, and looking for buying
opportunities on the markets we trade with this correlation.
What
price-structures do we see?
price-structures do we see?
· Trigger-zone is resistance overhead.
· AB=CD Pattern is bullish and it
appears we’re headed in that direction.
appears we’re headed in that direction.
· Wedge is above us and we previously
broke this wedge to the downside. Remember,
we often see fake-out-breakout and the price-reversal when we leave a wedge.
broke this wedge to the downside. Remember,
we often see fake-out-breakout and the price-reversal when we leave a wedge.
· Channel is bearish and lines up
almost perfectly with the bullish ABCD Pattern.
almost perfectly with the bullish ABCD Pattern.
· Double-top has created major support
below us, and price is currently testing this support as we prep.
below us, and price is currently testing this support as we prep.
Where
will a reversal be likely today?
will a reversal be likely today?
The price
reversal will be most likely at the lows of the wedge and the lows of the
range, which is right where we are NOW.
reversal will be most likely at the lows of the wedge and the lows of the
range, which is right where we are NOW.
What is
our trading plan for today?
our trading plan for today?
We don’t trade
the dollar, we use the correlation, so we’re expecting this big low-volume move
lower will result in a short-covering-rally, which means when this dollar rises
off this support we will be waiting to sell the new highs on markets such as
Gold, Crude, Euro, and Russell.
the dollar, we use the correlation, so we’re expecting this big low-volume move
lower will result in a short-covering-rally, which means when this dollar rises
off this support we will be waiting to sell the new highs on markets such as
Gold, Crude, Euro, and Russell.
If this
dollar keeps moving lower we then need to use our wave-pattern to enter long on
the markets we trade. We need to be
very careful buying into resistance on crude, gold, euro, Russell,
anything we want to trade, so wait for the wave on the 13/21 range charts for
the best entries.
dollar keeps moving lower we then need to use our wave-pattern to enter long on
the markets we trade. We need to be
very careful buying into resistance on crude, gold, euro, Russell,
anything we want to trade, so wait for the wave on the 13/21 range charts for
the best entries.
