I See Green Candles!
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.
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.