Carry-over to 2nd Quarter Trading
The USD Index has always been the 'Core Strategic Instrument & Trade Strategy' applied in almost all our trade decisions, its correlation with the US & global major indices have played a vital role especially the 1st quarter trading positions for 2017. Once a focal price point has been established and proven valid through the test of time (DXH2017 settled before expiration), it would remain resilient until otherwise contradicted by price action and initiate alternative USD correlated instrument.
Ensuring a continuing trend direction a combination of Futures, Options and ETFs are vital for a sequence of trades that can best maximize market potential. A clear USD Bearish Fund UDN trade position prior to futures expiration would best suit the strategy. However, there are a lot of strategies accessible only for those who would do their respective due diligence.
With the three (3) most recent 'Correlated' market information chronologically listed, the components of the analysis have proven to be as effective until the market states otherwise. With the US Dollar Index (DXY) opening in the Asian trading session at 99.45 and marked a low at 99.25 was a direct end-result of a contagion from the US vote. A backdrop of the non-passage of the Healthcare bill that reflected negatively for the President's legislative powers over the GOP members that lacked the numbers to pass it through.
1st Quarter Strategy: USD, Equities, ETF & Foreign Currency Trading
MEGATRADE101.com - The Business of Making the Right Trading Decisions Beyond Charting & Price Action Analysis
Here is a take away for all trader /investors concerned: Price Adjustments are normally made during a declining market well within a major rising channel. Thus, a major corrective move is well within a major trend higher or lower.
ReplyDelete'Moving forward, we do expect a comeback of volatility as the USD, and the precious metals including the oil markets would be in the limelight. Meanwhile, the US Stock Markets would experience a wider band of trading price range as it goes through the same level of price adjustments coming into the 2nd quarter of the year.'
ReplyDeleteAlexander ...dated March 16, 2017
PRICE ACTION Analysis always goes beyond fundamentals & technical charting systems. Market behavior can define directional price swings before and after a relevant action had taken place in the market.
ReplyDeleteAnd this can be achieve by how well one can master PRICE ACTION relative to an IN-DEPTH understanding of how real CANDLESTICK formation & strategies applied in certain market conditions.
NOTE: The ability to know when a 'Misdirection' is reflected in the market simply by Price Action is definitely an ADVANTAGE! That's a big check and can be learned.
ReplyDeleteValidated: DXY Weakness Justify UDN Strategy
ReplyDeleteRelated Information and continuing analysis on the USD Index Bearish Fund -UDN.
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