Instead of having to do research on the fundamentals of just one market, all I do is look at a price chart.<\/p>\n
My approach is the same no matter which market I look at.<\/p>\n
That’s because all markets go through the same shifts in sentiment – always moving between the two extremes of fear and greed.<\/p>\n
And there’s one valuable lesson I’ve learned after looking at tens of thousands of charts…<\/p>\n
Markets can have their own unique personalities.<\/p>\n
For example, the trading patterns in crude oil are very different from the ones in Apple, even though the same concepts of technical analysis apply to both markets.<\/p>\n
Today, we’ll be looking at a fascinating pattern I’ve identified in the U.S. dollar.<\/p>\n
Whenever the dollar makes a significant change in direction, it almost always takes place around the new year.<\/p>\n
Check out the U.S. Dollar Index (DXY) chart below…<\/p>\n
![\"Chart\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202208\/20220831-jmu-01_xhy584.png\")
<\/div>\nI’ve highlighted all the major turning points in the fortunes of the dollar going back to 2000.<\/p>\n
Since then, there’s a common thread connecting almost every major top and bottom in the dollar’s trading history.<\/p>\n
Specifically, I’ve identified a window that stretches between November and March when the dollar tends to stage dramatic reversals that last for a year or longer… putting in either a top or a bottom.<\/p>\n
The most recent example I’ve found is when the dollar bottomed out in January 2021. Since then, the dollar has gone on to surge over 22.5%.<\/p>\n
The strength we’ve seen over the last two years is quite impressive by any historical standard.<\/p>\n