Sunday, November 15, 2009

All eyes on US Dollar Index reversal..

A very good write up on this subject may be read @ "State of the Market" blog. And when that reversal takes place, equities across the globe will head lower. Until then, trade light.

What I see:
A. Two positive divergences to be confirmed by a price reversal by a close above 75.25
B. There is a potential double bottom.
C. There is a "Morning star" formation, to be confirmed by a white candle close above 75.65.
D. A channel break out possibility above 75.80.
E. If the reversal does not happen on Monday or latest by Tuesday, there is a threat of breaking the lows.

3 comments:

Capgainers said...

Hi Ilango,
Have asked query about Parabolic SLR under SLR post. Request for your guidance..
Thanks

Hemanta said...

Yes, Ilango; very good observation.
There is a clear +ve divergence in RSI & MACD IN $USD chart (in a Falling Wedge) and it is more clear in big 1 yr chart.
Similarly there is a clear negative divergence in RSI & MACD in S&P500 chart.
In our market Nifty volumes declining in rally
=> quite bearish..

Ilango said...

Hi..Prabhanshu,

Read about "Parabolic SAR" in the following link:

http://tradeinniftyonly.blogspot.com/2008/11/educative-lucrative-sar-stop-and.html

Read about "ORB" trading as well as other methods that could be collectively applied to Trading in real time analysis based on one week of trades in the following link:

http://tradeinniftyonly.blogspot.com/2009/11/using-pivot-points-as-trading-strategy.html

If properly understood and applied with discipline disregarding all the distractions, one could make consistently money from trading everyday in the markets and keep the losses to a minimum.

Best reagrds.

ilango

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