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The best way to understand is to know how it's calculated:

Because the $index is calculated from forex quotes, it will move at the same time. Could be slightly later but the time difference would be negligible.

It's stalling points are dependent on how those six currencies with USD in them are moving. Looking at the calculation EURUSD will influence the $index the most.

As with most charting, you need screen time to understand the subtle nature of the correlations. Try watching EURUSD, USDJPY, GBPUSD etc on H1 at the same time as $index on H1. Once you see the way they move in relation to each other, start looking at them on shorter timeframes.

Note USDJPY is positively correlated to $index ie USD is on the 'top' of USD/JPY

EDIT: when $index upward the USDJPY will likely be upward but GU and EU will likely be downward as they are negatively correlated ie /USD ... GBP/USD and EUR/USD

I see bullish signals on H4 and M15 but concerned about divergence forming on H1

Looking for a break of the consolidation

When combined with good analysis of ma's and SR, this can be a very good entry signal. This is GJ

That was bad ... 1st trade was a loser 12 pips! Got it back straight away though

when GU is going opposite to EU it's time to be careful ie EU looks like ready to break short but GU is rising

Hi Rob.. EU at a cross road atm... just above daily pivot... above WEEKLY pivot as well.. and above 60sma on H1... let see what happens.. NO BIAS here..lol

Thanks Jean ... scary looking stuff right now.

Another thing I like is when I see fibs being respected by range bound areas ... helps me consider the 'worth' of the fib

With GU and EU hitting some highs, it would be nice to see $index turn around so we may go short. Might stay up a few minutes to watch.

Only bagged 16 pips today ... has been difficult trading for me as my internet connection is playing up. It's DSL, so I phoned the phone company and they did a test on my line (don't know how they do it sitting at a desk ). Anyway, they confirmed a fault exists external to my house and will send someone out to fix it.

In the meantime my internet connection comes and goes so stops are really important when I enter trades!

that $index didn't do what I wanting so no trade but this might be an opportunity?

i haven't been trading... i've some friends here atm... they're still talking in Brussels atm so no big move imo.. take care. cheers Jean

USD INDEX right on 80.00 after a nice W run up hitting a bit of resistance there on 1H ... maybe looking for long EU let see what happens.. cheers

The picture says it all, always amazed at the daily range accuracy

Watching all the signs of a possible turn. Again ... never guaranteed but we watch carefully for entries when multiple signs are given

Watching that $index certainly gives good insight . Little bit choppy but EU had a high probability of doing what it did.