The U.S. Dollar Index broke out of a resistance point this week. I pointed out in a previous post about the Daily setting up a 3d criteria, after which time price rolled over but found support at $79.
The weekly chart (below) is interesting. After the previous few months of selling pressure price managed to hold a higher low while momentum registered quite a strong negative reading. This sort of reverse divergence can sometimes lead to a "slingshot" in price.
I'm still liking this Quarterly chart of the U.S. Dollar Index, as I'm in the camp that this could be a very long-term falling wedge.
Working with the above Quarterly chart I'll add a cloned trendline to give some perspective of how price has worked mostly within this channel for the majority of its life cycle
Finally, I'd like to add the 3/10macd to this quarterly chart to highlight the 3d criteria setting up on this chart while price is showing an inverse Head & Shoulders pattern.
Should be interesting going forward.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.