I think it's best used in conjunction with DI+ and DI-; the three form the DMI in many charting packages. I don't know that I'd use it as a standalone, but I really like it in conjunction with the MACD and slow stochastics.
because it has the closest correl to eurusd (~ -0.9) ok, its not a perfect hedge, but i take the usd out. and of course correl is a historic figure, it can change in future and it does. so with short eurusd im long usd, with short usdchf im short usd right now: eurusd +98 usdchf -7
hi steve, i like 1. and 2., but still see the posiblity that eurusd breaks the 1,175x low, which would also be a negative for the short usdjpy. i ll wait for the cpi, but too bad, i also have other things to do today.
hi baruch, will see how the eurpean session will go on, waiting for the us markets to open (chicago at 14:20) and then for the cpi. any prediction for cpi and the reaction?
maybe i hold the pos over the weekend, but i think there will be a weaker usd in some days. but today i think the usd could still become stronger, esp if 1,175 in eurusd is broken. should that happen today i will be on the usd short side on monday or tuesday. still, i think today is the time to be long or short and make a profit anyway (holding long enough and standing the pain)
Hi rax, Well, a surprise will really make a spike. But up or down? I don't know, but the gas prices are very high, aren't they?
but gas is not in the cpi, is it? but still the consumer, esp in the us is not happy about that, and you can spend your dollar only once...