The setup
With this method, I'm using the currency indices for each major currency to trade the direction of the long-term movement. Each major currency: USD, EURO, GBP, CHF, JPY, AUD, CAD, has a currency index which is that currencies strength compared to a group or basket of other currencies. DXY is the U.S. dollar index, EXY is the Eur index, BXY is the GBP index, SXY is the CHF index, JXY is the JPY index, CXY is the CAD index, and AXY is the AUD index. The indies are measured in several timeframes, from Monthly down to 1 minute. I use the Monthly, Weekly, Daily for the longer term momentum, with the direction from the longer term I use 4 Hour, 1 Hour, 15 min, timeframes to better time the entry. The indies are charted by Trading Veiw Indices Charts/ This is the monthly view, you can see the DXY is getting stronger while the other currencies are weakening. So if we are trading based on a long term outlook you could go with the USD. Now the weekly view: Weekly view is also showi...