DXY – NYBOT Dollar Index (Last:103.45)

‘Mechanical’ buying opportunities are not supposed to feel like opportunities, since the buying often occurs with the trading vehicle falling hard to the green line. The Dollar Index got hit three days in a row last week, sending it plummeting to x=102.56, where a ‘mechanical’ buy was signaled. Instead of leaping on the trade I’ll suggest paper trading it, the better to observe how an unappetizing possibility extricates itself from a bog. For the trade to work, DXY would need to rally to the red line without first dipping below C=100.62. _______ UPDATE (Mar 17): So far, so good: DXY has rallied from the green line and reached the midway point between the line and the midpoint Hidden Pivot at 104.50. At that price, taking a theoretical profit on 50% of the position would be in order.