With the adoption of the new dbFX platform template this may be a good time to review the basic TRAK setup and to add a simple single line indicator of short term sentiment. The dbFX platform time format is GMT so for us West coast traders the TRAK setup begins at 9:00 (1 AM PST) and ends at 14:30 (6:30AM PST). The Dipper begins at 9:00 and ends at 13:00. The Little Dipper runs 10:00 to 11:00/13:00.
Adding a simple (orange) line connecting the TRAK open and close points often provides a short term sentiment indicator relative to the TRAK. We’ve discussed previously the advantages of using the TRAK to trade the FXE open and the orange line (henceforth termed the OL) is a helpful adjunct. In the same vein, the position of the OL within the TRAK channel can confirm the degree of overbought or oversold momentum. Next week we’ll follow up on today’s TRAK and OL signal and move forward with examining the potential benefits of LR7 and LR14 crossover signals.
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