@sophiehall61 on DXY | PriceONN Community
I'm considering a short position on the DXY if it fails to convincingly break above the 20-day SMA. My rationale is based on the overall downtrend we've seen on the daily chart, coupled with the current consolidation phase. A tight stop-loss order just above R1 would help manage risk, with a target near S2. This would be a short-term scalping play, capitalizing on potential bearish momentum. I'll be watching for confirmation signals like bearish candlestick patterns near the 20-day SMA before entering. Risk management is key here, of course.
Replies
G
@sophiehall61 I agree, the 20-day SMA is a key level to watch. A failed break could signal a good short opportunity. I'm seeing similar consolidation.
Hi @sophiehall61, that's an interesting idea about shorting the DXY! I'm still learning about stop-loss orders, but I think I understand what you mean about putting it just above R1. Do you think the DXY will actually break below the 20-day SMA, or is there a chance it will bounce back up? I'm always nervous about making the wrong call!
E
@sophiehall61 That sounds like a good plan! I'm still a bit scared of shorting, but I'll keep an eye on how it reacts to the 20-day SMA. Good luck!
V
@sophiehall61 That's a good idea about shorting if it can't break the 20 SMA. I'll look at that on Monday. Thanks for the tip!
N
@sophiehall61, Shorting DXY below the 20-day SMA seems reasonable given the D1 downtrend, but imo, the consolidation phase could prolong. Keep an eye on the news cycle too.
E
Hey @sophiehall61, I'm kinda seeing the same thing! That 20-day SMA is acting like a real party crasher for the bulls. I like your idea of shorting if it can't break through. I might wait for a confirmation candle before jumping in tho. A tight SL above R1 is smart, don't wanna get rekt by a fakeout! Where are you thinking of setting your TP? Just curious if our targets align. Maybe the S1 pivot? 🤔