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I See Green Candles!

I See Green Candles!

by The MoleOctober 19, 2010

Although X-Mas is two months away I’m seeing some interesting candles today – on the DXY that is.

No, not those – but almost as festive. Let’s have a look, shall we?
Charts and commentary below for anyone donning a secret decoder ring. The rest of you guys will have to wait until tomorrow – sorry. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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What I’m seeing here is a net-line reversal bar, which is very bullish. Yes, we may retrace here a little as early buyers take profits and wait for a lower low. So if you are long the Dollar this why I would probably exit here and wait for a little reversal.

On a more medium/long term basis it’s important that we are not pushing below the 76.14 mark, because if we do we’re going all the way down to the 74 cluster. A good step toward painting a Dollar low here is a close near the top of today’s trading range, per the net-line signal rules that would be 77.93.

Full disclosure: Net-line sell/buy signals are heavily used by Chris Carolan who uses them in conjunction with several of his proprietary indicators. He uses them quite effectively and thus I have developed a taste for them as well, in particular when coupled with my own momo indicators.



About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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