I wish I understood VSA.
So if pros are buyin the $ in large amounts why doesn't it go up.
High demand usually pushes prices up not down surely?
Any clarification would be appreciated...Ignored
let me try to answer that first
from my conversations with him, pros are slowly accumulating dollars at even higher prices because...they can. market makers are loading up on inventory which will be spot dollars, dollar call options and they will be selling dollar put options as to front run the orderflow which ofcourse.. they have since they connect the bid and the ask. They can even allow dx to collapse even more but what me and mal think is that they are slowly temporary supporting dolllar and then disappear and let price slide a bit more. Look at billish weekly divergence on dollar index its ridiculous its the mother of all divergences that I have seen comparable with when euro/usd was 1.25xx for the second time before exploding 2500 pips to 1.50.
pros are showing signs of drying up dollar supply in markets and accumulating it for themselves in the form of bonds spot dollars and such its only inventory to them its merchandise which they get at mind boggling discount only to hold it untill dollars became scarce on market because of "fundies" only to have them sold after months and months of dollar rally
p.s. my projections for usdx is to come back to 82.70 area to meet major weekly supply still can not confirm a true lasting bottom here, but notice how bear raids become shallower and shallower and rallies becaume more and more as market makers try to hit all the bids before the bears smell the fire they will soon have in their rear ends
hope that helps
Thank you Malcolm, Belekas, Jim, raczekfx and Ryanmcd !