DXY Channel Overshoot / Total Divergence / Good for Crypto
US Dollar Index in daily timeframe has reached its bull channel line. Remember that we expect channel overshoots to be reversed in 5 candles, just like here.
DXY reversed down and went back to the channel in fifth candle. Another tips is that one side overshoot can cause the other side overshoot.
For example here we have a channel line overshoot so we may have a bull trendline overshoot in DXY sell off. Highlighted zone ( Gold, 94.5 - 94.3 ) is where we may have some bounce so be careful.
Closing daily candle below 20 MA can cause price fall down to the bullish trend line ( Bottom of Channel ).
TOTAL crypto currencies market cap index created falling WG in H4 timeframe.
3nd pushed down through this WG created a divergence ( Lower Low in chart / High Low in RSI ) that was a sign of early buying/increasing.
Now we see that TOTAL is getting out of this WG. First target for bulls in now marked up on TOTAL H4 chart ( Red, 2.83 -2.87 ).
You can use the DXY and TOTAL correlation to chose where to invest your money. Increasing the risks in financial markets ( Like finding new Covid-19 variant ) will cause people to invest in safe assets like GOLD and Bitcoin.
**This is not an investment advice. Your capital might be at risk.**
Give me your idea on comments...
Good Luck...
DXY reversed down and went back to the channel in fifth candle. Another tips is that one side overshoot can cause the other side overshoot.
For example here we have a channel line overshoot so we may have a bull trendline overshoot in DXY sell off. Highlighted zone ( Gold, 94.5 - 94.3 ) is where we may have some bounce so be careful.
Closing daily candle below 20 MA can cause price fall down to the bullish trend line ( Bottom of Channel ).
TOTAL crypto currencies market cap index created falling WG in H4 timeframe.
3nd pushed down through this WG created a divergence ( Lower Low in chart / High Low in RSI ) that was a sign of early buying/increasing.
Now we see that TOTAL is getting out of this WG. First target for bulls in now marked up on TOTAL H4 chart ( Red, 2.83 -2.87 ).
You can use the DXY and TOTAL correlation to chose where to invest your money. Increasing the risks in financial markets ( Like finding new Covid-19 variant ) will cause people to invest in safe assets like GOLD and Bitcoin.
**This is not an investment advice. Your capital might be at risk.**
Give me your idea on comments...
Good Luck...
Comment:
Breakout pullback to broken WG so Let's see if TOTAL market cap increase from here or not.
