DXY: Bullish looking chart suggests caution for crypto traders.
DXY: One chart you MUST pay attention to.
For chart like DXY, I only prefer higher TF analysis like Daily, 2D, 3D and Weekly so I will take you through these TFs one-by-one.
Daily TF:
Here we see DXY gave us perfect ‘Swing & Catch’ play from the Trend Maker indicator. Which also pushed DXY above the Daily TM ribbon (Red). From here we could expect DXY to continue its upside move towards next potential targets @91.83 and @92.6 (Note: As chart develops these targets will change as well)
2D TF:
On this TF we have much better and clearer picture.
Here we already see that, Trend Maker indicator is flashing the ‘Whale Buy’ signal indicated by green whale icon. Rite now it is trading just below the 2D ribbon and bullish move will be confirmed if we see DXY takes out this ribbon and closes above 91.5 level.
Just to highlight the importance of this 2D Whale signal, here is a DXY chart with previous Whale buy signals. For last 2 times when we saw this signal, soon after DXY started moving up pretty quickly for almost 13% up move.
In addition to this Whale signal, we also have Shepherd indicator signaling a potential bullish price action in future, as the Shepherd trend line (Aqua) remains above the support zones on both 2D and 3D TFs.
Weekly TF:
Lastly on the weekly TF we have this huge bullish divergence building. We also saw similar structure in the past DXY bottom which pushed DXY on 11% run. On the current chart set up we still have to see this bullish divergence confirmed, which will happen if DXY closes above 91.5 to 92 level.
All these things put together makes me think bullish for Dollar and we all know if that happens then we could see some blood in the crypto area in coming days.
This post is not to suggest anyone to close their longs or sell the spots, but only for educational purposes.
Happy and safe trading.
Chao.
For chart like DXY, I only prefer higher TF analysis like Daily, 2D, 3D and Weekly so I will take you through these TFs one-by-one.
Daily TF:
Here we see DXY gave us perfect ‘Swing & Catch’ play from the Trend Maker indicator. Which also pushed DXY above the Daily TM ribbon (Red). From here we could expect DXY to continue its upside move towards next potential targets @91.83 and @92.6 (Note: As chart develops these targets will change as well)
2D TF:
On this TF we have much better and clearer picture.
Here we already see that, Trend Maker indicator is flashing the ‘Whale Buy’ signal indicated by green whale icon. Rite now it is trading just below the 2D ribbon and bullish move will be confirmed if we see DXY takes out this ribbon and closes above 91.5 level.
Just to highlight the importance of this 2D Whale signal, here is a DXY chart with previous Whale buy signals. For last 2 times when we saw this signal, soon after DXY started moving up pretty quickly for almost 13% up move.
In addition to this Whale signal, we also have Shepherd indicator signaling a potential bullish price action in future, as the Shepherd trend line (Aqua) remains above the support zones on both 2D and 3D TFs.
Weekly TF:
Lastly on the weekly TF we have this huge bullish divergence building. We also saw similar structure in the past DXY bottom which pushed DXY on 11% run. On the current chart set up we still have to see this bullish divergence confirmed, which will happen if DXY closes above 91.5 to 92 level.
All these things put together makes me think bullish for Dollar and we all know if that happens then we could see some blood in the crypto area in coming days.
This post is not to suggest anyone to close their longs or sell the spots, but only for educational purposes.
Happy and safe trading.
Chao.
