How I Read Structure on Higher Timeframes (BMS Valid vs Invalid)Sharing a breakdown of how I personally read market structure on higher timeframes, especially when it comes to spotting a valid vs. invalid Break of Market Structure (BMS).
This is just my perspective based on experience hope it helps someone struggling with mixed signals across multiple timeframes.
Feedback and discussion always welcome 👇📊
Community ideas
GOLD: Z Wave in Progress - WXWXZ PatternGOLD: Z Wave in Progress - WXWXZ Pattern
GOLD: Z Wave in Progress Gold is currently developing the final leg of a complex WXYXZ pattern, with the Z wave taking shape.
Gold tends to rise unpredictably—even on days without major news or strong market volume, making this a hazardous trade.
FOMC Minutes Today.
The Federal Reserve’s minutes from the May 6-7 meeting will be released today. Policymakers showed no signs of adjusting interest rates soon, and today’s report may highlight how firmly they are sticking to their current "wait-and-see" approach.
You may watch the analysis for further details!
Thank you!
US DOLLAR INDEX Correlation Between Dollar Index (DXY), 10-Year Bond Yields, Bond Prices, and Interest Rates
1. Bond Prices vs. Yields
Inverse Relationship: Bond prices and yields move in opposite directions.
When bond prices rise, yields fall (e.g., demand for safe-haven assets drives prices up).
When bond prices fall, yields rise (e.g., selling pressure due to inflation fears).
Example: A 1% Fed rate hike can cause bond prices to drop, pushing 10-year yields up by ~1.3% .
2. 10-Year Bond Yields vs. Dollar Index (DXY)
Positive Correlation: Typically, higher yields attract foreign capital into USD assets, strengthening the dollar.
A 1% rise in 10-year yields historically correlates with a 1–2% DXY appreciation .
Risk-Off Scenarios: Investors may flock to both Treasuries (pushing yields down) and USD (DXY↑), weakening the usual correlation .
Policy Divergence: If the Fed delays rate cuts amid global easing, yields and DXY may diverge temporarily .
3. Interest Rates vs. Dollar Index (DXY)
Direct Relationship: Higher US interest rates strengthen the dollar by attracting yield-seeking capital.
A 25-basis-point Fed rate hike can boost DXY by 1–2% .
Example: In 2018, Fed rate hikes to 2.5% drove DXY gains of ~8% .
Inverse Impact on Bonds: Rate hikes depress bond prices (yields rise), reinforcing the DXY-yield link .
4. Interest Rates vs. Bond Yields
Policy-Driven: Fed rate changes directly influence short-term yields, while long-term yields (e.g., 10-year) reflect growth/inflation expectations.
The 10-year yield often leads Fed policy shifts. For example, yields fell 150 basis points ahead of 2019 rate cuts .
The 2-year Treasury yield is particularly sensitive to Fed expectations, serving as a "policy barometer" .
Summary Table of Relationships
Factor Relationship with DXY Relationship with 10-Year Yields
Bond Prices ↑ DXY ↓ (safe-haven flows weaken USD) Yields ↓ (inverse bond price-yield link)
10-Year Yields ↑ DXY ↑ (capital inflows) —
Interest Rates ↑ DXY ↑ (yield appeal) Yields ↑ (policy tightening)
Risk-Off Sentiment DXY ↑ (safe-haven demand) Yields ↓ (bond buying)
Key Exceptions and Contexts
Term Premium Dynamics:
Recent 10-year yield spikes (e.g., to 4.54%) are driven by market psychology (90% due to deficits/inflation fears vs. 10% fundamentals) .
Economic Growth Differentials:
Stronger US GDP growth (vs. peers) supports both yields and DXY, while weak growth decouples them .
Geopolitical Risks:
Trade tensions (e.g., US-China tariffs) can strengthen DXY as a safe haven, even if yields dip .
Conclusion
The Dollar Index (DXY) and 10-year bond yields generally share a positive correlation, reinforced by interest rate policies and capital flows. However, this relationship can weaken during risk-off environments or when fiscal/monetary policies diverge. Bond prices and yields remain inversely tied, while Fed rate decisions directly impact both yields and the dollar. Traders should monitor growth data, inflation trends, and central bank signals to navigate these interconnected dynamics.
#DOLLAR #USD #GOLD #SILVER #COPPER
US30Correlation Between US30, 10-Year Bond Yields, Bond Prices, and DXY
1. Bond Prices vs. Yields
Inverse Relationship: Bond prices and yields move inversely. When bond prices rise, yields fall, and vice versa.
Example: If the 10-year Treasury bond price drops (due to selling pressure), its yield rises to attract buyers.
Current 10-year yield: 4.54% (as of May 21, 2025).
2. 10-Year Yield vs. DXY (US Dollar Index)
Typical Positive Correlation: Higher yields attract foreign capital into USD-denominated assets, strengthening the dollar (DXY↑).
Recent Divergence:
A rising 10-year yield paired with a weakening DXY may signal market skepticism about Fed policy or risk aversion (e.g., investors favor Treasuries as safe havens despite lower yields).
Example: If yields rise due to inflation fears without economic growth, DXY may weaken as traders doubt the Fed’s ability to sustain rate hikes.
3. DXY vs. US30 (Dow Jones Industrial Average)
Inverse Correlation: A weaker dollar (DXY↓) often supports equity indices like US30, as multinational companies benefit from cheaper exports and higher overseas earnings.
Exceptions:
In risk-off environments, a stronger dollar (DXY↑) may coincide with equity sell-offs as investors flee to safe-haven assets.
4. 10-Year Yield vs. US30
Mixed Relationship:
Negative: Rising yields can pressure equities (US30↓) as higher borrowing costs reduce corporate profits and make bonds more attractive.
Positive: Yields rising due to growth optimism may lift stocks (US30↑) if earnings expectations improve.
5. Yield Curve Dynamics (30-10 Year Spread)
Current Spread: 0.51% (30-year yield: 4.94%, 10-year yield: 4.43%).
Implications:
A widening spread (30-year > 10-year) suggests long-term growth/inflation expectations.
A flattening/inverted spread signals economic uncertainty or recession fears.
Summary Table of Relationships
Factor Relationship with DXY Relationship with US30
10-Year Yield ↑ Typically ↑ (if growth-driven) ↓ (if rate-driven) / ↑ (if growth-driven)
Bond Prices ↑ ↓ (yields fall, USD less attractive) ↑ (cheaper borrowing)
DXY ↑ — Typically ↓ (hurts exports)
30-10 Spread Widens Neutral ↑ (growth optimism)
Key Scenarios
Risk-On Environment:
DXY↓ + US30↑ + Yields↑ (growth optimism).
Example: Weaker dollar boosts equities despite rising yields.
Risk-Off Environment:
DXY↑ + US30↓ + Yields↓ (safe-haven demand for bonds and USD).
Policy Divergence:
Yields↑ + DXY↓ (markets doubt Fed’s ability to sustain hikes despite inflation).
Conclusion
The interplay between US30, bond yields, prices, and DXY is dynamic and context-dependent:
Yield-DXY Link: Normally positive but can diverge during policy uncertainty or risk aversion.
DXY-US30 Link: Typically inverse but influenced by macroeconomic drivers.
Yield Curve: A widening 30-10 spread supports growth optimism, while flattening signals caution.
Traders must monitor Fed policy, inflation data, and risk sentiment to navigate these correlations effectively.
XAUUSD Idea: Structure, Fibonacci Setup & S&P 500 Correlation📉 XAUUSD Trade Outlook 🧠🔍
Currently analyzing Gold (XAUUSD), and things are getting interesting. On the daily timeframe, we’ve seen a clear bearish break of market structure, and this shift is also evident on the 4-hour chart. 🕰️📉
I’m watching closely for a bullish retracement into my key Fibonacci 61.8% level, where I’ll be looking for confirmation of a bearish structural break to initiate a short position. 🎯🔽
When we compare this setup to the US500 (S&P 500), it becomes even more compelling. The indices have rallied hard and appear overextended — a correction seems likely. 📊🧾
If we do get that pullback in the indices, gold may rally temporarily, but my overall bias remains bearish. If the indices resume their uptrend after a pullback, I expect gold to weaken further, aligning with my current short-side outlook. ⚠️📉
🛑 This is not financial advice. Always do your own analysis and manage risk according to your trading plan.
💬 What are your thoughts on gold right now? Are you leaning bullish or bearish? Let me know in the comments! 👇
ETH/USDT Trade Setup: Bullish Trend, Entry Zone & More🚀 ETH/USDT Trade Setup 💸📊
Keeping a close eye on Ethereum paired with USDT right now. 🔍📈
ETH has been holding a solid bullish trend, with healthy pullbacks into value zones that have repeatedly offered discounted long entries. 🛒⚡
I’m bullish overall, looking to trade with the trend. Looking for ETH to dip into my preferred entry zone. 🎯
🛡️ Stop-loss to go just beneath the most recent swing low to keep risk tight and controlled.
In this video, I cover:
🔹 How I apply Fibonacci tools to dial in my entry points and targets
🔹 My full ETH game plan, including the zones I'm watching and how I’m managing this setup
⚠️ Not financial advice. Always do your own due diligence and risk management.
💬 Are you trading ETH right now? What are your thoughts? Let me know in the comments below! 👇🔥
GOLDGOLD ,we kept the descending blue trendline with buy order and price came and reacted on that level in asian session.
i detailed that descending blue trendline breakout awaiting a retest due to to the nature of the price action,a previously broken neckline to a doubletop structure MADE THE RS/SR and we have see that buy pressure.
BNB/USDT Trade Setup: Bullish Trend, Discount Entry & Fibonacci 📈 BNB/USDT Trade Setup Breakdown 💰🔥
Currently watching BNB / USDT closely... and it's looking interesting! 🧐
BNB has been in a steady, bullish trend with consistent retracements into equilibrium of previous price ranges — offering repeated opportunities to buy at a discount. 📉💸
My bias remains bullish — I'm looking to continue with the trend.
Price has pulled back into my optimal entry zone, you could get long now or wait for a deeper pullback, depending on your personal entry criteria. 🎯
🛡️ Stop-loss goes just below the previous swing low, maintaining tight risk control.
In this video, I break down:
🔹 How I use Fibonacci + Fibonacci extension for precise entries and target zones
🔹 My custom Risk/Reward tool, a variation of the Fib extension.
🔹 Key zones I’m watching, and how I’m managing this setup.
⚠️ Not financial advice. Always do your own research and manage risk accordingly.
💬 Your opinions or feedback? Let me know in the comments 👇
Gold Still bearish for the momentLooking for gold to fill in a Bullish gap before I consider longs. price is pretty bearish this week and im thinking it due to the contract roll and month end close. Looking for price to find some area of support before considering going Long. As always we wait for the Killzones.
Gold long again: Completion of Double CombinationYesterday's long gold idea was invalidated and turns out that Gold has decided to do a double combination instead of a single A-B-C correction.
Now that I've seen a completion of a Double Combination, I think it is time to try to long gold again.
The stop is below $3240.
Meta Platforms - The rally is clearly not over!Meta Platforms - NASDAQ:META - can rally another +30%:
(click chart above to see the in depth analysis👆🏻)
Some people might say that it seem counterintuitive to predict another +30% rally on Meta Platforms while the stock has been rallying already about +750% over the past couple of months. But price action and market structure both tell us, that this will soon turn into reality.
Levels to watch: $850
Keep your long term vision!
Philip (BasicTrading)
Apple - Please look at this chart!Apple - NASDAQ:AAPL - is just wonderful:
(click chart above to see the in depth analysis👆🏻)
Last month, Apple created a quite strong bullish rejection wick of about +25%. It was actually no surprise at all, because market structure was perfectly pushing price higher. Following the bullish break and retest pattern, new all time highs will most likely follow.
Levels to watch: $200, $300
Keep your long term vision!
Philip (BasicTrading)