DXY
Dollar Index candlestick analysis :
1) overwhelming weakness in dollar as equity markets rallied
2) First signs of some buying emerge, some range expansion on upside
3) but all of buying quickly gets absorbed, by strong bearish engulfing candles, immediately after each attempt by buyers to drive prices up
4) clear range expansion also visible on downside as sellers again drive prices lower with momentum
5) this is a first proper sign of accumulation, long tail candles, range of candles on downside is getting narrow, and range expansion happening on upside, sellers are loosing momentum
6) mid point of previous wide range candle is where supply starts coming in, but range of bearish candles getting formed now is lower than candles that formed previously in the same zone at 4
7) as price reaches the same level of accumulation zone at 5, we again get long tail candles, further absorption of supply
8) widest range candle we have seen on upside in the entire base region, clear demand emerging now as buyers gain strength over sellers
9) each time a bearish candle forms, it gets countered by a bullish engulfing candle right on the very next week, some tails forming in the lower region. this is clear accumulation at higher levels now, in start contrast to price action at region 2 and 3
10) Dollar is now in a HH-Hl structure, supply is getting absorbed, and we will most likely get a breakout on the upside
11) this can lead to short term correction in equity indices
