Just to be clear, I already have a big position in USD built in the last couple of weeks, I didn't buy all the dollars right now, however, this signal is making me buy more.
This is an example of timing a trade. These type of setups seldom go wrong, it is the best and the most interesting setup I take. The risk reward is absolutely huge.
On the left the weekly chart. That is an uptrend, no need for explanations. A massive bull trend started in the dollar, and all you have to do is buy (if you are a longer term trader of course). I have stopped looking for shorts since November. What happened during the last two months was a correction in an amazing uptrend. I am 90% sure that this trend will continue. The Force Index is oversold and price is back at value, this is the time to start looking for longs (I have been looking for longs for a long time and lost a good amount of money trying to get back in).
In the middle, the daily chart shows a false breakout under the only proper support you can find on this chart. I say proper support because that is the biggest congestion area we had for quite some time in the dollar.
On the right side, the 4H chart shows a double bullish divergence and one hour ago price closed above local resistance.
Anticipating using the 4H chart, the bullish divergence should push price higher, the daily chart will close with a bullish candle and the weekly chart will close with sort of a neutral candle. Look for 100 to get broken!
This is as good as my timing can get!
评论
Kumowizard
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Good one! I also closed my USD shorts, actually did some long USDCAD and short EURUSD. I think USD will retrace a bit, with DXY to retest 96+ area. There we'll see.
vlad.adrian
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I have dollar longs against any pair available on my platform, except the GBP. I am trying to diversify as much as I can, plus I love exotics, and from what I've seen, you like exotics too.
Kumowizard
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Well yes, I am sitting in a very "exotic" country :-D
well, I try to long USD only ag. CAD this time, mainly because I feel a drop in WTI is very likely.
In general I do not see USD as turning very bullish, but I really agree that worth a try to do a swing trade long USD
vlad.adrian
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I see. I have a small position against the cad, but its not really my fav pair to go short. Good luck!