Salam....
Trading Range is between 1.6300 to 1.6700.
1. SELL Area : 1.6459
T1 : 1.6400
T2 : 1.6350
T3 : 1.6285
2. BUY Area : 1.6500
T1 : 1.6561
T2 L 1.6645
T3 : 1.6700
Allah Hu.
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Salam ... BISMILLAH HIRR RAHHMAN NIRR RAHHIM Trading Range is between 1.6100 to 1.6500 area. 1. BUY Area : 1.6293 T1 : 1.632...
1 comment:
The first strategy sold the Dollar Index short on any close below 3 pivot low points. Positions were covered on a close above 3 pivot lows or a close greater than the 40 week moving average. The second strategy sold the Dollar Index short on any close below a positive divergence bar. Positions were covered on a close above a positive divergence bar or a close above the 40 week moving average. In both strategies, weekly data were utilized.
Both strategies identified price patterns that suggested the Dollar Index would fall and there would be a high likelihood that that fall would be significant. In the first strategy, the average trade lasted 23 weeks, and in the second strategy the average trade lasted 14 weeks. The discrepancy in the average trade length was due to the fact that prices really accelerated lower on closes below positive divergence bars as traders looking for a bottom throw in the towel to cover losing positions. This trade or the second strategy made its gains, which were almost equal to strategy 1, over a much shorter time frame.
With regards to the first strategy (i.e., close below 3 pivots), the sell signal has been in effect for 8 weeks. For the second strategy (i.e., close below positive divergence) the sell signal has been in effect for 4 weeks. So what is my point? This weak dollar trade has yet to reach an average duration in time. In the Dollar Index, the trend is still your friend until it ends.
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