Hello,
I am happy to state that I am sticking to my ambition of uploading a tutorial every weekend.
This is precisely my third tutorial in the series.
To add to the surprise, there is also a video on the same subject, though it is not ready yet. It takes donkey number of years with my wi-fi connection to upload a YouTube video.
Nevertheless, I am on with the written part of the tutorial till the mammoth video gets to the web.
OK, so by now all of you would know that the major indices play a big role in the analysis of the movement of the markets.
The major ones are the DAX and the U.S. Dollar Index.
I stick to the Dollar Index when it comes to forming my trading plan, as this is the one which plays a pivotal role in forming the major trends and moves in the market.
Now, how to go about using it for an advantage in gaining pips in the forex market.
For the same one needs to follow and study the trend formation in the Index for the available data to come up with the future predictions.
The entire philosophy lies in understanding the behaviour patterns of the Index, so as to come with predictions that turn out giving near to accurate trading signals.
I have developed my own theory in going about the same.
I follow the website http://www.investing.com/ to have a clear look at the Index.
For the convenience, just follow the link below to land directly at the page where you can witness the historical data for the respective Index.
http://www.investing.com/quotes/us-dollar-index-historical-data
The page will show you the default data for the Index since last 30 days, though you can view a more customized one by fiddling with the date and the time frame parameters.
Now at the end of the table you could see the highest, lowest as well as the average value for the Index in the last 30 days.
If you are a seasoned trader by now, you know what a helpful insight that could bring to your trading portfolio.
Since, I like to keep things simple, I have enlisted my strategy for the Index in points below. Do feel free to agree, or disagree with me on the same. I would love to know your game plan to madness in this regard.
Yeah, it is that simple. But mind you, you still need a strong trading plan to combine with this trading strategy of the Dollar Index.
As you see, you do get to know whether to go short or long on the pair by analyzing the index, but you still need to know from where exactly you need to take a call of going long or short. That is when your own devised trading plan will come in to the picture.
Moreover, there is one trick that I would love to share. It will serve as a double check to know that the trend formation that you have analyzed by studying the Index is indeed fool proof.
Though this trick in itself may not produce exemplary results all the time, but it definitely gives a second confirming opinion when followed in conjunction with the 5 point strategy that I explained above.
To see the trick just follow the link below:
https://www.paywithatweet.com/pay/?id=f4e917a0780c6e322c7a976a8b197bcf
Hope you understood what I was trying to explain in this post; but in case you have not, then please feel free to get in touch with me or order any of my Tutorial which I serve as a gig on Fiverr.
Till then enjoy your weekend and have a great life ahead.
I am happy to state that I am sticking to my ambition of uploading a tutorial every weekend.
This is precisely my third tutorial in the series.
To add to the surprise, there is also a video on the same subject, though it is not ready yet. It takes donkey number of years with my wi-fi connection to upload a YouTube video.
Nevertheless, I am on with the written part of the tutorial till the mammoth video gets to the web.
OK, so by now all of you would know that the major indices play a big role in the analysis of the movement of the markets.
The major ones are the DAX and the U.S. Dollar Index.
I stick to the Dollar Index when it comes to forming my trading plan, as this is the one which plays a pivotal role in forming the major trends and moves in the market.
Now, how to go about using it for an advantage in gaining pips in the forex market.
For the same one needs to follow and study the trend formation in the Index for the available data to come up with the future predictions.
The entire philosophy lies in understanding the behaviour patterns of the Index, so as to come with predictions that turn out giving near to accurate trading signals.
I have developed my own theory in going about the same.
I follow the website http://www.investing.com/ to have a clear look at the Index.
For the convenience, just follow the link below to land directly at the page where you can witness the historical data for the respective Index.
http://www.investing.com/quotes/us-dollar-index-historical-data
The page will show you the default data for the Index since last 30 days, though you can view a more customized one by fiddling with the date and the time frame parameters.
Now at the end of the table you could see the highest, lowest as well as the average value for the Index in the last 30 days.
If you are a seasoned trader by now, you know what a helpful insight that could bring to your trading portfolio.
Since, I like to keep things simple, I have enlisted my strategy for the Index in points below. Do feel free to agree, or disagree with me on the same. I would love to know your game plan to madness in this regard.
1. I
like to know the last traded value of the Index.
2. Then
I look at the average value of the Index in the default view of the site, which
is precisely 30 days time period.
3. Then
I place the last traded value in between the highest and the lowest values of
the Index in the last 30 days.
4. If
the last traded value is closer to the lowest and below the average, I decide
to go long on the EUR/USD pair.
5. I
simply go short if the vice-versa is happening.
Yeah, it is that simple. But mind you, you still need a strong trading plan to combine with this trading strategy of the Dollar Index.
As you see, you do get to know whether to go short or long on the pair by analyzing the index, but you still need to know from where exactly you need to take a call of going long or short. That is when your own devised trading plan will come in to the picture.
Moreover, there is one trick that I would love to share. It will serve as a double check to know that the trend formation that you have analyzed by studying the Index is indeed fool proof.
Though this trick in itself may not produce exemplary results all the time, but it definitely gives a second confirming opinion when followed in conjunction with the 5 point strategy that I explained above.
To see the trick just follow the link below:
https://www.paywithatweet.com/pay/?id=f4e917a0780c6e322c7a976a8b197bcf
Hope you understood what I was trying to explain in this post; but in case you have not, then please feel free to get in touch with me or order any of my Tutorial which I serve as a gig on Fiverr.
Till then enjoy your weekend and have a great life ahead.
