MARKET ANALYSIS: As you can see from the charts both Eurusd and dollar index or showing opposite trade setups. So in Eurusd once the market breaks the flag pattern and closes above the zone we can go for a long. At the same time once dollar index closes below the rising wedge we can short the market below the zone for the given target.
Now this is how a institutional traders compares a trade setup with dollar index, Hope this helps. Cheers!
@dennis09, Different "institutions", different strategies and goals. Some institutions use Elliott wave patterns.
dennis09
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@Rocketman, Im not referring to wave analysis. Moreso the notion that we, or at least most of us, make comparisons to the USD in the manner presented above. Your statement about institutions having different strategies further illustrates my point.
Rocketman
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@dennis09, Yes. Me too. Some just use line charts. hahaha...
dennis09
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@Rocketman, Our philosophy is actually to NOT make comparisons between instruments in this manner, preferring to trade each pair on its own merits. Correlations fluctuate constantly along with intensity. We do, however, rely heavily on Cumulative Delta and Volume Profiles.