Ok folks update ontrading with dollar index: Aud/AUD live trade -little or no corelation crude: noticed early hours 4am to 6pm it was in confluence with the dollar, i.e dollar went down and crude went down! after that was tempted at 8am to trade as it seemed to be moving inversely with the dollar. However, early hours trading threw up warning sign. Note Crude was playing off (very well) it's own levels. Had i later traded crude it would have worked out ok. conclusion - inclusive, gamble to trade against dollar, as you don't know when it will break inverse sinc. GBP/USD - (traded own personal method), but kept eye on relationship with dollar. Obviously absolutely no corelation in morning hours (too volatile) but that's ok as plenty of UK data out in the morning and I wouldn't have expected adherence to the dollar index. However, limited conformity. However it moved to its own tune (sspt ress) Gold again a few timeframes did not work out (notably 9am slot) - have to be honest i longed gold at 2pm (because dollar was hitting R1 for the 2nd candle) - closed at 1151 - so good result. however dollar dollar bummed (stopped dead at pivot) so closed my gold. Good result, But had i stayed with it, would have played further as gold penetrating it's own R1 point and perhaps I could've got to 1156. But no great loss there! that's why I quizzed Mella about her short on dollar at 1150 - 'cos i did the exact same opposite I closed my gold long at that point!! Eur/usd - good results on trading this as worked well in conformity with the dollar index, but again it was working in it's parameters.
Overall conclusion I can see why you guys like this, as it is an indicator (better than average, and with the benefits of not been lagging in nature which is fault of ALL indicators) but doesn't work all the time and with the instruments you would think it should work with. the god particle it isn't, but rest assured I shall refer to the dollar regualarly as a guide, nothing more.
Mella, my advice to you spend the weekend reading up on pivot points, and if you can combine them with your prowess of dollar index correlated trading, you can be the next Mrs Warren Buffett!
ATB and enjoy your weekend folks, off to take mrs bahman for a dinner on meagre proceeds of first aud/usd trade of the day!
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