Longs are trapped, will result in a short trade when they exit. Remember : risk management is the key!
DXY / DX1! / FX:USDOLLAR / Dollar Index is searching for liquidity, bouncing up and down in the process. This is my long term prediction on how it could move - given no major economic shifts. Option 1 DXY breaks below the Q1 2018 lows, collects liquidity It then runs up to fill in the fair value gap from Q3 2020 It then falls down and get rejected...
US Treasury Bonds (ZB1! or TLT) are nearing some very sensitive + bullish zones on the weekly chart. Here's another way this can play out in next few weeks! Alternative way this could play out :
US Treasury Bonds (ZB1! or TLT) are nearing some very sensitive + bullish zones on the weekly chart. Here's one way this can play out in next few weeks!
DXY (US Dollar) is trapping traders on both sides of the price : giving us both long and short trades when these traders exit. Hoping for a Short trade first, then a long trade!
The recent gap up in GBPUSD left a bunch of sellers trapped below the monthly lows. When price comes back to them, they would love an exit - giving us a long entry! Also : DXY seems to be moving lower, thereby confirming the up direction in GBPUSD.
That feeling... - when everything you analyzed, played out exactly as expected - BUT you missed the entry by a hair! :-(
Sellers are trapped in the zone as shown on EURUSD 4H DXY has already started moving down, confirming the UP direction in EURUSD. When price comes back to them, they would need an exit - giving us a LONG trade!
DXY is currently bearish on all timeframes - D, W, M and it has now trapped a bunch of buyers in a false breakout on 4H - who would love an exit when price comes back to them! For reference, DXY on Daily
The monthly analysis is a very useful barometer of understanding where Weekly and Daily charts could be headed next. Once we know how DXY is going to move - corresponding correlations can also be anticipated for GBPUSD, EURUSD, USDCAD, USDCHF, etc.
I took this trade and was expecting price to move 3R in my favor. However, after hitting 1R, the price just collapsed back. Even though I might loose this trade - but because of my risk management plan, this trade is already risk free for me (after it hit 1R). I cannot express enough - HAVE A RISK MANAGEMENT PLAN that works for your attitude! Risk management...
DXY has already started breaking lower lows - USDCAD is also now doing the same. It just broke a lower low. If an entry does not develops before a significant leg develops, abandon the trade - as it would then have created equal highs above the trade zone.
Detailed backtest results - prnt.sc - Win/Loss ratio : 300% - Non losers : 78% - Net R : 17 R across 18 trades - Avg R / winner = 1.42 - Avg R / trade = 0.94 Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not take the trade due to one or more trade qualifiers - Bug :...
Now that the US elections are behind us, all the intentions of the weekly chart of US DOLLAR / DXY seem as if it's going to move lower! It is forming bearish order blocks (on Weekly), trapping longs all along the way since March 2020 & also there are a bunch of shorts trapped from April 2018 timeframe that would love an exit. Till price action reaches those...
Trade setup There are trapped traders on both sides of price above monthly highs & lows for TBonds ZB1! on 4H timeframe. When price comes back to either of these zones - these trapped traders will want to exit - giving us an exit! Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close...
Detailed backtest results - prnt.sc - Win/Loss ratio : 186% - Non losers : 70% - Net R : 15.75 R across 23 trades - Avg R / winner = 1.21 - Avg R / trade = 0.68 NOTE : DXY correlation was not used in this backtest Icons on the chart - Thumbs up : Trade was a win - Thumbs down : Trade was a loss - Circle with a cross : Trade was breakeven - Cross : Did not...
Trade setup DXY (Dollar index) has trapped buyers at the top. When price comes back to this zone, they'd love an exit - giving us a short trade in the process. Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2) Reduce further 25% at 2R AND move SL to break-even 3) Close trade at 3R 4) Winner = 1.75R Strategy Pickup a pair which is highly...
When DXY is making higher highs, why is EURUSD breaking the strong correlation and trying to go higher? ==> It's a TRAP for buyers! When price comes back to the marked zone, trapped buyers will exit - giving us a beautiful SHORT trade. Look for the monthly liquidity to get raided as a target! Risk management 1) Reduce 50% at 1R => Trade becomes risk free 2)...