About Chartology

With "Chartology", you'll be sitting in the front row as I discuss price action analysis, market cycles, chart pattern setups, optimal trading time and volatility analysis, as well as the psychology behind price action. Put these tools together and you're looking at how to begin mastering the charts. In fact, be sure to watch the "Your Forex Questions Answered" video here.

Every day, occasionally more often, I'll additionally discuss order entry, U.S. Dollar Index, crude oil, gold, and the Dow. Forex trading allows and requires a viewpoint that goes beyond simply analyzing the pairs. I'll explain in detail how I scan for trades — I call it "triage" — how I set up trades proactively, and how I manage entries and risk. Trading isn't all that diffcult but the process of finding your tools and approach and trusting them is. So here's your front row in my trading office, thanks for reading, let's get going!

Who is Queen Cleopiptra?

Chartology Author

Raghee Horner is a private trader, founder of EZ2Trade Software, entrepreneur, and author. She has been trading forex, as well as futures and stocks for almost twenty years. She is a regular contributor at a number of sites including FXStreet, Trading Markets, Autochartist, eSignal and a featured speaker at the Forex and Traders Expos. Her commentary and analysis is seen daily by thousands of traders at her personal blog ragheehorner.com. She has written articles for Technical Analysis of Stocks and Commodities, Currency Trader, Your Trading Edge, and Traders Journal magazine.

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December 2009

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Dow and the Dollar: Interesting Levels Ahead

Posted 18:43 14 December 2009 | Comments

Hi Traders,

I just returned last week from Seoul, Korea last week and spent a great deal of time there speaking about the U.S. Dollar and the Dow Jones. These two markets are of keen interest for anyone trader dollar-correlated pairs.

This week we find these two daily charts are at important levels as prices have reached the previous highs on the Dow. The near term highs are 10516 and 10513 and today's high was 10514 - so we're in the resistance zone. The question now is whether this will hold as we ceiling.

12-14-2009 6-44-35 PM.gif

The reason why this ceiling and the highs must be watched is because of the relationship back to the U.S. Dollar.

12-14-2009 6-45-33 PM.gif

The U.S. Dollar has been moving higher which would mean that the Dow should be weakening if the standing correlation is to hold. All correlations keep working...until they don't. So never assume a correlation, instead, always look to confirm the correlation. If the high in the Dow holds and the equities sell-off, this could rally an already bullish sentiment in the U.S. Dollar Index and propel it to 77.00 - where once again the conviction of the bulls is likely to be tested as the 77.00 psychological level has been an area of resistance.

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Hi,

I would like to thank you for sharing this piece of information. I find this info very useful. I run thru the charts myself found US Dollars index and DJIA are indeed closely negatively correlated. This piece of info will be nice to take note for traders who are trading futures indices.

gbpeurs | Posted 06:28 15 December 2009

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