Bearish DXY
Hey, let me explain that: When I posted that DXY was bearish because even though the price was going higher the momentum waves in MCB were about to print lower high, now it is on its way higher but still not there yet. Now I am sure you can recognize that as bearish div but let me explain why Bearish dives bring the price down even when you see a good volume in a candle or two.
I have highlighted Two areas of price action and Momentum waves. The one is RED is causing the bearishness in DXY right now. Why?
Because there is an imbalance of Buyers and in the Yellow Circles compared to the sellers from the Red Circle. This is calculated using the number buys/sells and the amount of each buys/sells that has taken place in each candle in both the circles.
If the total number of people buying right now is not going to overcome the number of sellers (these are the people who were the buyers in) in red circle. Now they are sellers because they are in profit. This is going to create selling pressure on DXY and bring DXY down. Another thing to note is DXY has been over bought for a while on Weekly without having a chance to cool down. This means, the number of new buyers coming into DXY is reducing weekly, even with the news and all, the buyer exhaustion is going to affect DXY movement in coming weeks and months. This is bearish for DXY because it has become too heavy right now, and the heavier it gets the more force from buyers is needed to keep pushing it even higher, which is very unhealth for DXY overall. When it falls it's going to fall hard.
I have highlighted Two areas of price action and Momentum waves. The one is RED is causing the bearishness in DXY right now. Why?
Because there is an imbalance of Buyers and in the Yellow Circles compared to the sellers from the Red Circle. This is calculated using the number buys/sells and the amount of each buys/sells that has taken place in each candle in both the circles.
If the total number of people buying right now is not going to overcome the number of sellers (these are the people who were the buyers in) in red circle. Now they are sellers because they are in profit. This is going to create selling pressure on DXY and bring DXY down. Another thing to note is DXY has been over bought for a while on Weekly without having a chance to cool down. This means, the number of new buyers coming into DXY is reducing weekly, even with the news and all, the buyer exhaustion is going to affect DXY movement in coming weeks and months. This is bearish for DXY because it has become too heavy right now, and the heavier it gets the more force from buyers is needed to keep pushing it even higher, which is very unhealth for DXY overall. When it falls it's going to fall hard.
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