Forex Analysis 001 - Being aware of the possibilities (Dxy - US Dollar)

in #forex6 years ago (edited)

Hello, thank you for taking the time out of your day to view this post. My intentions is to provide you with VALUE.

As a quick disclaimer, everything displayed is for analytical purposes as we track the movements of various currencies. My goal is to assist in understanding the movements and the anticipated patterns that the market may be attempting to complete. This should not be taken as financial/investment advice. Thank you for your understanding

One must observe a particular pair over a length of time to fully understand its behavior. You must understand that this is a longterm game we are playing, therefore we must be prepared for any/all possibilities of the movements of the markets so we can attempt to cash in on potential Higher Probabilty Trade (HPT) setups. These do not appear every minute of the day, however my point being if you are to observe the movements of a currency, over time you will prepare yourself for what is developing, so your can catch the larger impulsive movements and JOIN the the market makers.

I have to start somwhere with providing my analysis, so let us begin with the Dxy (Us Dollar) since this is one of the most important drivers of the currency market. It is VITAL to understand what the DXY is doing, so there is LESS confusion with other crosses you are observing.

Instead of dumping a sequential view of my analysis leading up to this very moment (i am new on steemit), I will give a quick rundown on where we are currently and what I see as of todays date. Keep in mind! The market gives us NEW INFORMATION daily, so you must be FLUID and ADAPT to these changes as they observe. HOWEVER, based on current information this is my current viewpoint on the DXY.

I am anticipating this move as to be a completed impulse which appears to now be correcting. What type of correction are we forming? Its too early to determine, but we can prepare for the next anticipated movements based on the current information that is presented. Here you will see where I baselining my interpretation of the impulse outlined in purple, following is the correction which we are currently within: (note, this is not meaning that this has completed the 3rd wave of a cycle, the "3" is simply to give confirmation that I am observing a 3 wave impulse on this timeframe)

I want to clarify what I mean by we are in the correction, this purple arrow is pointing to the most relevant price, which will be a CORRECTION of the previous bullish impulse:

Regarding the possibilities of what can be formed are endless, however we have some guidelines.

One must be aware of the evolution of patterns and its developing price action. Since it is early, we can use the more basic patterns as references as to what we can begin to anticipate:

The question stands as to whether or not this first piece of the potential correction is even finished or not, we can see price action potentially giving us a sell setup however we must be patient to see if this completes (I will elaborate on this in a moment):

However we can also begin to prepare for this first piece to have COMPLETED its move to the downside, potentially giving us the first piece of information (potentially A) and we can anticipate this (what may be) a bottom to give us the NEXT piece of information. So assuming this may be the case, we would have to look at this as the start of an impulse:

Moving to the 4H timeframe for a moment.....If this is the start of said impulse, we can prepare to follow our roadmap of potential patterns/flats which were outlined in the previous screenshots above.

We will then anticipate for this (what is starting to look as a 3 wave) Impulse to the upside which will break the previous top.

On a more fractal level, we can see on the smaller timeframe the impulse beginning to form (potentially):

If you are NOT AWARE of the possibilities, you will get BURNED on the markets seemingly "confusing" movements.

We will NEVER KNOW what gets formed, but if you are AWARE of what MIGHT form, you can prepare successful trades.

HOWEVER KEEP IN MIND! Patterns and price action can get more complicated....
Assuming we are correct regarding the impulse to the upside and forming a new piece, a LARGER CORRECTION may simply be forming:

Which may lead us to an exceptional sell setup:

Which of course will give us new information, and we will determine which pattern they MIGHT be making ( here is a very early/rough guess as to what that may be creating assuming this is a larger correction forming:)

A 3 wave down to complete this potential impulse.....

Then after completing said impulse to the downside, we get our Next piece of information? Lets see:

I want you to begin observing the market in a unique way. Be open to the possibilities.

This may seem confusing at first, however the quicker you understand the potential setups the EASIER understanding the market movements becomes.

~I WILL DO MY BEST IN STAYING CONSISTENT WITH UPDATES AND NEW OBSERVATIONS~

Stay focused, keep learning new things every day....

Take it slow! Trading is not a money printing ATM from your phone. This is a BUSINESS!

Have a wonderful weekend

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very interesting analysis.

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