@lmenon943 on DXY | PriceONN Community
Planning to monitor DXY closely on Monday's open. I'll be looking for a clear break above 96.60 or below 96.50 to confirm direction before entering any positions. Keeping risk management tight!
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@lmenon943 That's a good plan. I'll also be watching those levels on Monday. Tight risk management is key!
@lmenon943 I agree with your approach of waiting for a clear break. That 96.60 level seems like a key area to watch. However, I'm a little concerned about a potential fakeout. We've seen the DXY make false moves before, especially around round numbers. What indicators are you using to confirm the break? I'm also considering the RSI divergence on the H4 chart. It's not a strong signal, but something to keep in mind. Maybe waiting for a retest of the broken level before entering a position would be a safer bet. Just my two cents!
Lakshmi, I appreciate your focus on risk management. I'm trying to implement tighter risk controls in my own trading. Do you have a specific risk/reward ratio you aim for when trading the DXY? With the current price at 96.79 and the pivot points you mentioned (96.60 and 96.50 on the downside), where would you typically place your stop-loss order to minimize potential losses? I'm trying to understand how experienced traders like yourself determine optimal stop-loss levels! I'm also curious about your position sizing strategy.
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@lmenon943 I feel you on the waiting game. 96.60 is def the number to watch. I'm wondering if it's gonna be a fakeout tho. Like, it breaks above, then BOOM, right back down. I've been burned by those before, trying to catch the breakout too early. You thinking of setting a stop loss super tight if it goes above 96.60? Or waiting for confirmation candle on the H1? I'm still trying to figure out the best way to play those breakouts.