XAUUSD : Target Reached ✅Well, as you can see, exactly as we expected, the price faced the demand pressure in the mentioned range, and with more than 130 pips of growth, it reached exactly the supply range that we said ($1676 to $1680) and The initial negative reaction showed! Important levels of supply and demand are marked on the chart !!
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👤 Arman Shaban : @ArmanShabanTrading
📅 09.21.2022
⚠️(DYOR)
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US10Y
US Treasure Bonds Yields - Long TermAlright so I've come up with a formula between different US Bond Yields resulting in an oscillator indicator - which successfully signals tops on the stock markets and the bear market after.
Based on the area where that oscillator crosses the 0 value (down), we start topping until it comes back up. This period last in average around 1 year and is aligningt +/- with the actual top of SPX.
This is a period in which stocks may consolidate or still go up - overall an area of indecission, ending bullish power etc.
The actual drop always comes after that period and last up to 800 days- depending on the strength of the previous bull trend - The longer and stronger, the bigger the fall.
All such corrections were hitting lower than 0.618 fib level - meaning we will hit 2200 or even 1600 (SPX).
Key takeaways:
- We're not in an actual Bear Market yet.
- We are in consolidation meaning a pump for ath retests is possible until March 2023 +/-
- After March 2023 we should start real falls until around March 2025
- SPX Bear Market Target 1600-2200
Sorry and you're welcome!
BTCUSD vs US01YUS10Y has been crazy lately. It has broken an all time down-trend channel and was moving just like we would like BTC to move. But anyways... Why does this affect the market ?
When confidence is high, 10-year bond prices fall and yields climb. This is because investors believe they can find higher-yielding investments elsewhere and do not believe they need to be conservative.
In other terms - if risk assets bad, us10y good and vice-versa. As we can tell by the chart - investors have been running away to US Government backed Treasury bond to save themselves from the drops. But what now, when we're reaching high levels?
At first US10Y was driving up together with the rest of the markets - since covid's '20 crash we experienced a massive bounce (or pump) on all assets. This positive correlation has lasted until breaking the descending resistance on US10Y - since then the correlation was only negative for crypto and it is there, where risk-assets investors started saving their funds into bonds.
Right now US10Y is approaching a really big confluence of resistance: ascending triangle target, long time resistance level and top of curvy channel. Crossing this is almost impossible, specially if last weeks were growing evenly week by week creating a stair-like growth . And those like to drop heavily afterwards... + we're at resistance (reminder).
If US10Y bounces down now, it would mean BTC $17k was a local bottom (not long term, just for now!) and could make up all the fall it had until now as investors would re-enter risk-on assets
Where would BTC bounce to ? $38k-$40k if euphoria doesn't drive it further. It was since then when BTC started falling down without retesting broken levels.
Hope this helped you understand markets a little bit more today. If there's nothing new to you here - you are an MVP.
Cheers!
PS: Too early to judge, but if the price bounces to those levels - it would create a cup/handle pattern.
All is in FED's hands now.
US10y-US2y Compare with BTCDear friends
The difference between the returns of 10-year and 2-year bonds and the lower the value of these two charts, the slope of the reduction curve (Flat) and vice versa, the more we grow in these two charts, the slope of the curve has increased (Steep).
I compared the behavior of this chart to Bitcoin.
American financial and economic data.
Market Rotation from risk to safety.1st Vertical Line in bottom two charts show risk assets peaking such as Nasdaq and Bitcoin while the top two charts suggest a bottom confirmation by both US dollar and US 10 year treasury bills.
Horizontal line shows major penetration of support and/or resistance for all four charts. Penetration to the upside for top 2 charts, while penetration to the downside for risk assets.
2nd vertical line marks the point of penetration for support and/or resistance.
Why the strong correlation?
Market rotation from risk to safety and there's no other way to buy US treasury bills than to pay with US dollars.
Why Bonds Might Be Nearing LowsBonds have continued their decline as the markets price in a potentially historic FOMC rate hike this week. Inflation data suggests that the Fed's rate hike trajectory is not really working and inflation is still soaring. On the other hand, multiple indicators suggest that we are in a recession, and the Fed will have to pivot their hawkish stance after this last rate hike. If that is the case, then we expect the bond market to be nearing lows. We have one more technical level before we will have to start using inverse Fibonacci extension levels to predict lows in bonds again, as 113'12 is our last technical level. The Kovach OBV also appears to be leveling off. The next targets from above are 115'03 and 115'29.
#US10Y #Bonds Can Fall From This FCP ZoneTraders & Investors, US 10 Year Bonds have been on the rise. After a minor correction they rose higher but now they could be approaching an FCP zone which can act as a resistance. We also have Relative Strength Index divergence setting up on weekly time frame.
Out this on your watch list as this can impact stock market, indices and other asset classes due to money flow from this asset class.
Rules:
1. Never trade too much
2. Never trade without a confirmation
3. Never rely on signals, do your own analysis and research too
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✅ Follow me for future ideas, trade set ups and the updates of this analysis
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Take care and trade well
-Vik
____________________________________________________
📌 DISCLAIMER
The content on this analysis is subject to change at any time without notice, and is provided for the sole purpose of education only.
Not a financial advice or signal. Please make your own independent investment decisions.
____________________________________________________
DESCENDING CHANNEL - Range Trading StrategyHello my Fellow TraderZ,
Today this is not any Trade idea but a TUTORIAL on how to Trade the RANGE or the CHANNEL.
This is simple, safe, profitable and straight forward Price Action strategy.
Here we are taking the chart of US Govt. Bond 10Y-yield. This is the perfect setup of DECENDING CHANNEL on MONTHLY chart. No time bound you can trade at any TIMEFRAMES, but Higher Time Frames are more reliable.
You see, to draw any Trendline we need minimum 2/3 touch points.
Whenever the price touches the Trendline, never open any Trade in RUSH, wait, see the kind of candles forming at Touch Points (at LOWER TL = BULLISH PA, at UPPER TL = BEARISH PA). PA = Price Action. This should be coupled with the VOLUME.
Notice the S/R areas, where price gives multiple hits before bounce or rejection. This will give you extra boost as these horizontal S/R are more reliable than Dynamic S/R. Also these areas could be your Pivots to make ENTRY(incase price doesn't hit the channel Trendlines) or TP Targets.
Look at the Percentage(%) wise gains simply following the channel(BUY THE LOW, SELL THE HIGH). Well I've just mentioned the BUYS, you can add the short positions also.
Until the price is in channel you can take Multiple Trades both LONGing and SHORTing the market, unless the channel Breaks. This is the beauty of Range Trading. Similarly you can trade ASCENDING CHANNEL/WEDGES as well.
NOTE : PRICE ACTION is majorly important in the Game of Trading.
If you like this content, kindly give a FOLLOW & BOOST to me. Also COMMENT to bring more such #educational contents.
Sorry if its a bit Lengthy post.
Happy Trading . CHEERS!!!
Combined Macro Charts For You!I'm a big fan of exotic charts. It is often tough to gauge the current markets by looking at individual charts so sometimes I like to combine them together. Here is a rough rationale of this chart:
TOTAL
Crypto Total seems to have a good representation small cap behavior and is often a leading indicator of the broader risk-on market.
S&P
Large caps, historically it's a trailing indicator, but doesn't have such a long tail as Treasury Yields.
1/DXY
Relatively good indicator of impedance changes. If I'm going to convert my dollars to something else, and then back again, it represents relatively how efficient the economic circuit is. More volatility = conflicting expectations by the market. It is sometimes inversely correlated with risk assets but not always.
US02Y/US10Y
Inverted 10Y/02Y. How are investors feeling about the short-term economy vs long-term? When this symbol experiences large downward volatility, the relative health of debt in the economy is unveiled and investors flee risk-on assets.
I weighted each of these symbols 25% by using the 3 Year MA:
...........................3Y.MA......................factor
TOTAL................1049933961759.....1
ES1!..................3723.74..................281956839
1/DXY...............0.010448................100491382251052
US02Y/US10Y..0.4784....................2194678013710
(sorry about all the dots, I had to use it to make it line up)
Here is the resulting symbol:
CRYPTOCAP:TOTAL+1/TVC:DXY*100491382251052+CME_MINI:ES1!*281956839+US02Y/US10Y*2194678013710
Normalized to 100:
(CRYPTOCAP:TOTAL+1/TVC:DXY*100491382251052+CME_MINI:ES1!*281956839+US02Y/US10Y*2194678013710)/67060000000
Here is the index without Treasury Yields, so each remaining symbol is now 33% of the chart:
CRYPTOCAP:TOTAL+1/TVC:DXY*100491382251052+CME_MINI:ES1!*281956839
Normalized to 100:
(CRYPTOCAP:TOTAL+1/TVC:DXY*100491382251052+CME_MINI:ES1!*281956839)/53870000000
Here is the chart, normalized to 100 along with some rough expectations:
I hope that this is somehow useful. The overall conclusion here seems to indicate the macro environment is currently not friendly at all.
Thanks for taking a look and I hope you enjoyed this idea. Hopefully it makes sense and I don't believe there are any major mistakes. If you spot a mistake, or have an exotic chart of your own you would like to share, please let me know!
Good luck and don't forget to hedge your bets. Take care and be safe.
- your fringe chartist
US10Y SHORT IDEACurrently monitoring a range of instruments with regards to the economic disaster that is currently unfolding before our eyes. Have taken measures to cut off from the world, and focus purely on technicals. Somethings going to give soon... Will it be the US10Y?
Looking at the lower timeframes, we can see a revisit back up to the 78.6% level for the second time, right at this specific point in time, was the release of Non Farm Payrolls, prev: 526k, Con: 300k, Act: 316k. Currently monitoring the move up through the timeframes, witnessed the move occur on 15m ripple chart, which was the break down past
scalper and boundary cloud. Retesting the underside of the scalper and moving lower. On the WAVE chart we see its currently held up by the WAVE Dynamic resistance. if that breaks we see a shift in trend on the 15m & 1hr.
Will place this here for now and possibly update this as time goes by.
US10Y. P-Modeling Pt 1. Yields of Cajun Welcome Hyperspace Travelers.
Proposition development is rendered.
SPX is going to fresh multigenerational lows.
The cybernetic era of advancement is upon us.
The 4th industrial revolution is imminent.
Things will get better.
But first they must get very bad.
Massive co-variate weight distribution imminent.
Wealth distribution will be forced from top 1% into lower 90%.
Technical Complexity is defined by linear and cyclic domains.
Each domain combined created this gorgeous technical formation.
Complex Technical Formation on 1 Week Macro Analysis of US Government Bonds 10 YR Yield.
Harmonic Handle string sequencing.
Defined Cajun Cup.
Defined C-A harmonic equalization.
Defined Linear Root.
Defined Cyclic Root.
____________________________
Start: 1980.
End: 2025.
Tap: Mean Reversion at minimum.
Thanks for Pondering the Unknown with Me,
Glitch420
Potential Long on GOLD after nice pullback. I've managed to catch a nice pullback on gold and expected the bearish will soon. Next, we are expecting gold to continue on bullish movement as it finishes doing some pullback.
There are pretty interesting key levels to watch especially on a daily timeframe and we need to pay extra attention to this key level to whether gold will continue downward or start to climb back as on rejection on the weekly trendline (blue line).
Overall I am biased on bullish on gold. Levels of entry SL and TP are as on the chart.
Trade safe and take care everyone.
US10Y-US02Y interesting connection of RVGI indicator and BitcoinUS10Y-US02Y interesting connection of RVGI indicator and Bitcoin
Except at one false signal June 2018 every cross in the extreme area of this indicator marked quite good Entry or Exit points for BTC
Seems the next cross for a possible Entry point is ahead dear Crypto Nation
*not financial advice
do your own research before investing
Forget All Other ChartsIgnore all the other charts right now. They are based on DOLLARS. The dollar is permanently unstable and your imperialist overlords are here to take away your spending power. We're due to see bearish action similar to April 5th (pink dot). The question is, will we see a lower high in relative yields, or will we set a higher low and possibly become uninverted, and return above 1.0 once again? Consider that we just set a higher high in the S&P medium term and it could have simply been a move to fool the crowd. On the other hand, debt is at all time highs, and rates even at this level mean systemic insolvency. Raising rates further means quicker insolvency. I say just get it over with or don't do it at all. Inflation year over year is, realistically, 20-40%, each year since 2020. Key interest rates aren't even 10% of that. There is no way they will be able to control this in any way, shape or form, or manufacture a so called "soft landing".
Rates rise >1.0 = total collapse, then easing
Rates bounce <1.0 = unrealistic rally blow off top, more tightening to trigger the crash
I think I used too many arrows but hopefully it makes sense.
Good luck and don't forget to hedge your bets.
Yield curve inversion cyclesUS10Y treasury yield minus US02Y treasury yield is an accurate predictor of impending economic recession. Here we compare the 10 Aug 2022 yield curve inversion low point to the low points in 2007 and 2000 that pre-dated the Great Recession and Dot Com stock market crashes. While a small inversion (below 0) does not always pre-date a recession, inversions as low as the current 10 Aug 2022 always have.
Even more interesting is when you zoom in to the daily chart. Here we see the 10Y - 2Y moving back towards 0 from 10 Aug 2022 through 22 Aug 2022, even as stocks have begun to decline since release of the Fed minutes and recent commentary from Fed officials about the importance of continuing with additional rate hikes based on current inflation data.