Dollar Index: Range-Bound But Bullish? 3 Scenarios to Watch

11월 11일

The Dollar Index (DXY) is in a global range, within which there is a bullish daily order flow. This flow is manifesting as a sequential mitigation of, and reversal from, imbalances and manipulation zones.

On November 5th, a deviation above the global range occurred, sweeping external liquidity. This was engineered by a manipulation in the form of a Daily Order Block. Following this, the index began a corrective decline and is now approaching a POI (Demand Zone) and potential Fibonacci reversal levels.

Long positions can be considered from one of these levels, targeting the upper boundary of the range (the mitigation of the Daily OB).

• SCENARIO 1: Requires price to find acceptance above the 50% level upon reaching it and mitigating the Demand Zone.
  
  
• SCENARIO 2: If this level is broken, the next 61.8% level (also inside the Demand Zone) may act as support.
  
  
• SCENARIO 3: If this level is also broken, a liquidity sweep of the Oct 28 low is highly probable, which would be accompanied by a test of the 78.6% Fib level.
  

The entry condition for a long setup from each level is confirmed acceptance above it and the beginning of a bullish order flow on a lower timeframe.

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The principles and conditions for forming the manipulation zones I show in this trade idea are detailed in my educational publication, which was chosen by TradingView for the "Editor's Picks" category and received a huge amount of positive feedback from this insightful trading community. To better understand the logic I've used here and the general principles of price movement in most markets from the perspective of institutional capital, I highly recommend checking out this guide if you haven't already. 👇

P.S. This is not a prediction of the exact price direction. It is a description of high-probability setups that become valid only if specific conditions are met when the price reaches the marked POI. If the conditions are not met, the setups are invalid. No setup has a 100% success rate, so if you decide to use this trade idea, always apply a stop-loss and proper risk management. Trade smart.

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그저께

노트

DXY | UPDATE

The Dollar Index received a clear reversal reaction from the Demand Zone and the 50% Fib level, finding acceptance above it with daily candle closes.

Therefore, I expect a higher probability of continued growth (possibly via a correction on the lower timeframe) towards at least the Daily Order Block, as per the original idea.

17시간 전

거래청산: 타겟 닿음

DXY | UPDATE

The Dollar Index has reached its target by mitigating the Daily Order Block. The idea played out according to Scenario 1 — the price reversed from the 50% Fib level and the DEMAND zone.

The future direction of the instrument will depend on whether there is a downward reversal from the Bearish Order Block where the growth has currently paused.

If this Order Block is broken and the price fully exits the range, I expect further growth of the index on the higher timeframe.

However, if the Order Block acts as resistance and prevents the index from leaving the global range, it may remain there for an indefinite time. In this case, on the daily structure, we can still watch for a reaction at the 78.6% Fib level, which remains valid as long as the price has not updated the high at 100.360.