Dollar Flow Index Setups
DollarFlow Index is an extremely Powerful Index
It provides signals when other tools do not.
1. IF DollarFLow Index is above the ZERO level and drops to test it - an alert will be triggered suggesting “DollarFlow Index dropping into a potential test of the zero bound” - this is important as it give you time to prepare and assess the situation
2. Esp if Execution Sentiment is rising or Cyan - indicating a tendency or preference for participants to lean towards buying - the defense of the ZERO BOUND is likely to be brisk. Even if the general picture is not very positive, however, the DollarFlow Index’s retest of the zero bound is usually a place to see a decision by markets or a decent reaction
3. When it appears that the DollarFlow Index (DFI) is bouncing out of the zero bound then a notification will trigger as below
4. all of these concepts work in reverse also when DFI is approaching from below and esp well when in a downtrending market