Yesterday, (Aug 10th) there was an article on Babypips pointing out how the DXY had been consolidating inside a symmetrical triangle. I brought up the chart and studied it with interest. Trading the DXY is not something I have done, so drawing on my pipsology knowledge I set a buy and sell order above and below the triangle respectively.
And then the breakout duly occurred…… fantastic, order filled.
But then I realised something. Quite logically all major pairs fell in line, correlating with the fall in the dollar. Every single one. Massive moves across the board, throwing out some of my entry points I had been patiently waiting for. It seems obvious to me now, but why am I not looking at DXY to help me analyze major pairs? When the DXY broke, an idea would have been to follow suit on the majors. It felt like I had missed a trick.
I’ll be keeping a closer 
on the 
from now on. 
DXY is really useful for spotting USD pair correlated price action. Unfortunately other major currencies have nothing so useful.
I keep a regular tab on all the major currencies using the 50EMA across the 28 leading pair charts. If price is above the 50, that is 1 bullish point for the base currency and 1 bearish point for the counter currency. So the possible scores for a currency would be between 7-0 and 0-7. Its a simple and “dirty” method.
When taking any long-term trades I always check whether the two currencies are bullish and bearish across their other pair charts - I do sometimes take trades contrary to the bullish/bearish points match-up. But I have to have a damn good reason…
@tommor A big thank you, I have adopted your strength indicator and it has become a cornerstone of my trading strategy.
I have moved towards trading primarily off the 1 day chart, where patience and currency strength are important factors. I make it my business to know each currency’s ‘score’ at all times.
Hopefully I’m turning a corner towards profitable long term trading.
Cheers! 