Just a quick update on the idea I posted on the DXY Dollar index yesterday were I said I suspect there would be a correction after taking out the 2002 September high which was located at a Monthly SUPPLY/SELL zone, correcting down towards the 103 area before then moving higher towards 117.
I wrote yesterday that I wanted to see a Daily close back down under 110 and for my custom price action indicator to give me a SELL signal either on the daily or weekly charts. The indicator has just give me a nice SELL signal the accuracy of these signals depends on were it happens i.e. inside higher timeframe SUPPLY/DEMAND or at support and resistance levels.
When the signal is in line with these levels it is normally very accurate so I have shorted the DXY with a target area just below 105 (will watch to go lower) stop is above 111.5.
Markets are fundamentally driven at present so technicals will not work as well especially on lower timeframes it's my belief in markets like this paying attention to the higher timeframe charts Weekly and Monthly will provide evidence of where the markets are heading and by simply using lower timeframes to find evidence of slowing of momentum and entry signals. You can do very well