ENTRY AND EXIT RATES IN CURRENCY BAND MONETARY TRADE METHOD
19/07/2017
The assessment, measurement, analysis and valuation of the “average weighted rates” or “average traded weighted rates – ATWR)” at the lower and at the upper bands of the daily bands, weekly bands, monthly bands, short-term bands, medium-term bands and long-terms bands are the entries and exits rates for currency band trading.
Trading target could be (1) daily band or daily price stability band or daily exchange rate target zone; (2) weekly band or weekly price stability band or weekly exchange rate target zone; (3) monthly band or monthly price stability band or monthly exchange rate target zone; (4) short-term band or short-term price stability band or short-term exchange rate target zone; (5) medium-term band or medium-term price stability band or medium-term exchange rate target zone, and/or; (6) long-term band or long-term price stability band or long-term exchange rate target zone.
Investment managers or monetarist traders decided the target, daily, weekly, monthly, short-term, medium-term or the long-term meeting their asset management plan. The directional trading shall follow the directional movement of the “medium-term exchange rate target zone”. At such, when the directional movement of the medium-term exchange rate target zone is to “upward” then the daily, weekly, monthly and short-term bands shall be traded by “buy/buy/buy/buy” and when the directional movement of the medium-term exchange rate target zone is to “downward” then the daily, weekly, monthly and short-term bands shall be traded by “sell/sell/sell/sell”. No trading allowed and or recommended against the directional of the medium-term exchange rate target zone for “low to risk-free trading operation”. Any trades against the directional is “speculation” with high risk of lost.
The largest task of the monetarist traders are the assessment, measurement, analysis and valuation of the average weighted rates, which is only possible to be made by establishing daily, weekly, monthly, short-term, medium-term and long-term currency bands and not available in the market. The average weighted rates or ATWR sometime released by the central banks, such as RBNZ, RBA, BoC and other central banks for “previous rates” and the trading operation requires the “current rates” for market entry and exit decision making tools.
Directional movement of the “medium-term exchange rate target zone” assessed, measured, analyzed and valuated by the uses of long-term exchange rate target zone by matching into “long-term economic and financial stability bands”. Those bands anticipating the “future” on the medium and the long-term.
One of the best charting available in the market I found that can be useful and applicable for measurement is “tradingview.com”. Not known if they understand this monetary method or not, however the available charting models and measurement tools could be useful as supporting tool for “currency band”. The charting time frame also matching the “time series currency band” and the yield charting also matching the price stability measurement. GOOD LUCK FOR TRADINGVIEW.COM
The assessment, measurement, analysis and valuation of the “average weighted rates” or “average traded weighted rates – ATWR)” at the lower and at the upper bands of the daily bands, weekly bands, monthly bands, short-term bands, medium-term bands and long-terms bands are the entries and exits rates for currency band trading.
Trading target could be (1) daily band or daily price stability band or daily exchange rate target zone; (2) weekly band or weekly price stability band or weekly exchange rate target zone; (3) monthly band or monthly price stability band or monthly exchange rate target zone; (4) short-term band or short-term price stability band or short-term exchange rate target zone; (5) medium-term band or medium-term price stability band or medium-term exchange rate target zone, and/or; (6) long-term band or long-term price stability band or long-term exchange rate target zone.
Investment managers or monetarist traders decided the target, daily, weekly, monthly, short-term, medium-term or the long-term meeting their asset management plan. The directional trading shall follow the directional movement of the “medium-term exchange rate target zone”. At such, when the directional movement of the medium-term exchange rate target zone is to “upward” then the daily, weekly, monthly and short-term bands shall be traded by “buy/buy/buy/buy” and when the directional movement of the medium-term exchange rate target zone is to “downward” then the daily, weekly, monthly and short-term bands shall be traded by “sell/sell/sell/sell”. No trading allowed and or recommended against the directional of the medium-term exchange rate target zone for “low to risk-free trading operation”. Any trades against the directional is “speculation” with high risk of lost.
The largest task of the monetarist traders are the assessment, measurement, analysis and valuation of the average weighted rates, which is only possible to be made by establishing daily, weekly, monthly, short-term, medium-term and long-term currency bands and not available in the market. The average weighted rates or ATWR sometime released by the central banks, such as RBNZ, RBA, BoC and other central banks for “previous rates” and the trading operation requires the “current rates” for market entry and exit decision making tools.
Directional movement of the “medium-term exchange rate target zone” assessed, measured, analyzed and valuated by the uses of long-term exchange rate target zone by matching into “long-term economic and financial stability bands”. Those bands anticipating the “future” on the medium and the long-term.
One of the best charting available in the market I found that can be useful and applicable for measurement is “tradingview.com”. Not known if they understand this monetary method or not, however the available charting models and measurement tools could be useful as supporting tool for “currency band”. The charting time frame also matching the “time series currency band” and the yield charting also matching the price stability measurement. GOOD LUCK FOR TRADINGVIEW.COM
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