Dollar Index pattern
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  1. #1
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    Default Dollar Index pattern

    I could not find a thread committed to Dollar Index?

    My question relates to flag patterns.

    DX has reached the top of a structure on weekly and also just broken the 1.27 retracement level of the previous bearish leg as below on weekly.
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    On daily it seems to be making a ascending flag
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    On 4H one can see a ascending flag pattern or still developing
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    In school I learned that ascending flag patterns indicate the likelihood that a bearish move is on the way. My analysis shows that more bullish momentum can be expected, perhaps testing the top of structure again. I guess my best option would be to wait and see what happens before perhaps going long on EURUSD.

    What do you think?

  2. #2
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    Hello nazzeem,
    I want to mention that bullish flag and bullish pennants patterns are continuation patterns. So if the ascending flag is from an existing uptrend then fundamentally the penetration of the pattern will be to the upside. On the other hand, a descending flag will break to the downside.
    Of course there are also the exemptions.

  3. #3
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    Quote Originally Posted by GerhardtW View Post
    Hello nazzeem,
    I want to mention that bullish flag and bullish pennants patterns are continuation patterns. So if the ascending flag is from an existing uptrend then fundamentally the penetration of the pattern will be to the upside. On the other hand, a descending flag will break to the downside.
    Of course there are also the exemptions.

    I were referring to what I learned in school. It seems to be the opposite of what you are saying, but I`m also of the opinion that the Dollar Index chart in question has more bullish movement on the way.
    How to Trade Wedge Chart Patterns in Forex

  4. #4
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    Quote Originally Posted by nazzeem View Post
    I were referring to what I learned in school. It seems to be the opposite of what you are saying, but I`m also of the opinion that the Dollar Index chart in question has more bullish movement on the way.
    Currently, the dollar index is recording the fourth negative day in a row, so my expectation is a further downside movement until the 100.00 psychological support level and then may continue its bullish momentum.

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