@NehaJoshi69 on DXY | PriceONN Community
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Okay, so I've been trying to plan my trading strategy for DXY next week. Considering the slightly negative close on Friday, I'm thinking I'll wait for Monday's open to see if there's a gap down. If it opens below 96.50, I might consider a short position, but I'll be watching the 96.40 level closely as a potential support. Alternatively, if it gaps up above 96.60, I'll wait for a confirmation before entering a long position. I'm still a bit unsure about setting my stop-loss, maybe around 96.45 for a short and 96.65 for a long? Need to backtest this more over the weekend. What do you guys think?
Replies
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@NehaJoshi69 Waiting for a gap down before entering a short position seems prudent. However, consider the potential for a whipsaw. A false break below 96.50 could quickly reverse. Manage your risk accordingly.
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@NehaJoshi69, your plan to wait for a gap down is prudent. However, be prepared for a potential fakeout. The 96.40 level is key, but confirm with other indicators before committing to a short position. I'm watching that level too.
@NehaJoshi69, I understand your caution regarding a potential gap down on Monday. However, given the current RSI of 64.6, I think we might see further upside before any significant retracement. Keep an eye on how it interacts with the R1 pivot level; a break above that could invalidate your short entry.
Hey @NehaJoshi69, that's a solid plan! Waiting for the Monday open is smart, especially after a neutral close like we had on Friday. I'm not sure about a short below 96.50 though. That feels a bit aggressive considering the 200 SMA is hanging around 96.87. I'd be careful about that level acting as support. Maybe wait for a confirmation below that before entering a short? Just my two cents! Good luck with your trades next week!