Trade of the Week
Although the monthly and weekly are just showing trend entry to the upside, the daily chart below shows a trend congestion entrance. Why? Because the live trend dot has gone flat (red arrow) and the close was under the current bars open and the trend dot.
So what do we do look to the left of the chart for the last pivot or phantom high (yellow dot) and draw a dotted line representing the congestion high. We are now waiting within five bars for an isolated low or phantom low to give us the bottom of the congestion range.
The Hawkeye Perspective
In conclusion, until this has taken place there is too much risk to trade the dollar index long, but when the congestion parameters are broken then a trade setup will occur either to the up or down side.
Trading any market without education on the six ways the market moves is like walking into a casino with a stack of dollars – you’re relying on luck rather than a methodology.
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