Sideways Markets Dollar Index Day Trading Strategy

– Sideways dollar to trade sideways markets

o When the dollar index trades flat, everything else trades flat
o When the dollar breaks, other markets break
o Dollar has a negative correlation
o Here’s how to use it:

 Open the 13-range on the dollar

• Is it trending? If so, look for trades on other markets
• Is it flat/sideways? If so, bracket the price highs and lows

 Once I define the highs and lows and add my price alert indicator I then wait for the test of the highs/lows

• It may successfully break out
• It may fail to breakout

 If the breakout is successful:

• 2 trades to take

o Breaker pattern
o Wave pattern

 How do I use this to make money today?

• Check the dollar in the early morning
• Define the sideways range
• Set your price alert indicator
• Go through your morning prep on the markets you trade
• Wait patiently for the dollar to break
• Then look for the high % patterns on the markets you are trading
• Remember to make note of the previous day’s trading range

o Inside days are always higher risk to trade

– Today’s 11am news, bonds sales, what does that mean?

o Bond auction is when the US sells debt

o Longer term bonds, and shorter term bonds which all have different yields

o If there is a LOT of buying activity on the bonds that signals a strong appetite for us debt (healthy sign of US economy)

– Watching a 2 patterns develop at once on the fast track

– Drawing a channel

– Trailing stop to the fast track

o 10 tick stop and 10 tick target

– How often do I adjust my levels?

o Whenever my slow levels do NOT match my Fast timeframe levels I want to re-set the indicator

– How do I know if this is going to be a good day or a bad?

o Start with the dollar

 Sideways = higher risk
 Trending = higher % trades

o Watch the speed

 Green speed = fast
 Red speed = slow

o Get to know the market’s personality

 Is the market moving aggressively through new highs/lows
 Or is the market failing to breakout