DXY - DAILY - Bullish Breakout Using Inside bars

Something on the radar for us today was a potential bullish breakout on the US Dollar Index. We have a while to go, but currently the Tuesday daily candle is forming an inside bar (a bar that trades completely within the range of the previous days bar). Inside bars are a sign of consolidation & consolidation/contraction typically lead to expansion (imagine squeezing a spring together with your fingers, eventually that energy has to get released).

Targets have us looking at a previous level of structure from the weekly (look left structure leaves clues) and a 127 Fibonacci extension taken from the most recent swing low to swing high.

Stops noted on the chart are options based off being below the lows of the potential inside bar & the lows of the mother candle.

Hope this idea is helpful & as always if you have any questions or comments please leave them below as I do go through and read each on.

Lastly, i do Livestream here on tradingview each Tues, Wed & Thurs at 7:30 am New York time. Feel free to join the walkthrough & discussion of my Top Trading Idea of the Day.

Akil