Hi Traders! Dollar Index buy idea update and follow up is here. On March 18th I shared this “US Dollar Index Buy Idea From Strong Support Zone” post in trading view. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
US Dollar Index H4(4 Hours) Chart Current Scenario
In my forecast, I mentioned that “If we get a valid breakout above the most recent downtrend line we may then consider it as a validation for the bullish view”. On the H4 chart, the price action followed my analysis exactly as I expected it to. The validation for the bullish view which is a valid breakout above the most recent downtrend line happened. After the breakout of this dynamic resistance, we had a pullback and then the price moved higher further providing an excellent move to the upside.
On the M15 chart, the market provided us with various facts supporting the bullish view. After the breakout of the most recent downtrend line on the H4 chart, we had a pullback and the price created double wave down on the M15 chart with the price creating a bullish divergence between the first low that has formed at 91.745 and the second low that has formed at 91.685 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. Then as you can see in the image below how the price moved higher after that.
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.
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To your success,
Vladimir Ribakov
Certified Financial Technician
