Hello traders!
As usual I don't take any trades on Friday, so I prepared an educational post for you.
This time I would like to introduce you DXY index and show you how to apply it in your trading to improve your trading!
What is DXY?
Basically DXY INDEX shows the value of USD to other currencies. This consist of EUR, JPY, CHF, GBP, CAD and SEK .
How does DXY correlates with USD pairs?
If DXY is rising, all USD/XXX pairs should go up, and all XXX/USD pairs should go down. If DXY is falling down, USD/XXX pairs should go down and XXX/USD pairs up. Simple, right?
How to use this in your trading?
Simply, as you can see on post, if DXY is rising then all USD/XXX pairs should go up and all XXX/USD pairs should go down. Let's say that you are about to enter a long trade on the GBP/USD . You did your analysis and you are sure that this time it will go your way. If you really want a great confirmation, go check DXY . Is DXY going down? Then GBP/USD should go your way!
Thanks for stopping by!
Don’t forget to let me know your opinion on this in the comment section below! 💬 Sharing is caring! 👨👩👧👦
Have a wonderful and profitable day! ❤️
- ProfitalzTrading
As usual I don't take any trades on Friday, so I prepared an educational post for you.
This time I would like to introduce you DXY index and show you how to apply it in your trading to improve your trading!
What is DXY?
Basically DXY INDEX shows the value of USD to other currencies. This consist of EUR, JPY, CHF, GBP, CAD and SEK .
How does DXY correlates with USD pairs?
If DXY is rising, all USD/XXX pairs should go up, and all XXX/USD pairs should go down. If DXY is falling down, USD/XXX pairs should go down and XXX/USD pairs up. Simple, right?
How to use this in your trading?
Simply, as you can see on post, if DXY is rising then all USD/XXX pairs should go up and all XXX/USD pairs should go down. Let's say that you are about to enter a long trade on the GBP/USD . You did your analysis and you are sure that this time it will go your way. If you really want a great confirmation, go check DXY . Is DXY going down? Then GBP/USD should go your way!
Thanks for stopping by!
Don’t forget to let me know your opinion on this in the comment section below! 💬 Sharing is caring! 👨👩👧👦
Have a wonderful and profitable day! ❤️
- ProfitalzTrading
