How nice would it be to make 2,000 pips in one trade?
There's a way to catching monster waves which occur a few times, mostly every 4-7 years.
The data I used are freely available and are open to the public. Please see the attached file named "Catching monster waves".
Sounds a bit bold, but all in all it's about forecasting recessions and that's where the money is being made.
When you trade the EUR/USD in recessions, money turns over faster than in economic upswings. Why? Because the slope of the trend is steeper going down compared to going up in uptrends.
Why do I recommend trading the EUR/USD in recessions?
The #1 currency in the world is the USD. Other names for it are USD index or DXY. It's basket is made up of 58% of the EUR. The EUR/USD moves with a high negative correlation compared to the DXY. Meaning, when the DXY in a recession goes up, the EUR/USD goes down. It's pretty simple.
What are good signals?
When the 10s2s (10 year 2 year yield spread) = 10 year - 2 year, is in the 100 to 200 basis points territory and makes a 40 basis point or steep move to the downside then that's a good signal. After an economic boom in 2014, comes a recession. In an economic boom the yield spread is high. And in May 2014 made a lower high in my excel chart.
How many pips can be made in EUR/USD?
2011: 2,000 pips
2014: 2,600 pips
2021: 1,800 pips
I just wanted to give something back. It's my pleasure when this helps only one person.
There's a way to catching monster waves which occur a few times, mostly every 4-7 years.
The data I used are freely available and are open to the public. Please see the attached file named "Catching monster waves".
Sounds a bit bold, but all in all it's about forecasting recessions and that's where the money is being made.
When you trade the EUR/USD in recessions, money turns over faster than in economic upswings. Why? Because the slope of the trend is steeper going down compared to going up in uptrends.
Why do I recommend trading the EUR/USD in recessions?
The #1 currency in the world is the USD. Other names for it are USD index or DXY. It's basket is made up of 58% of the EUR. The EUR/USD moves with a high negative correlation compared to the DXY. Meaning, when the DXY in a recession goes up, the EUR/USD goes down. It's pretty simple.
What are good signals?
When the 10s2s (10 year 2 year yield spread) = 10 year - 2 year, is in the 100 to 200 basis points territory and makes a 40 basis point or steep move to the downside then that's a good signal. After an economic boom in 2014, comes a recession. In an economic boom the yield spread is high. And in May 2014 made a lower high in my excel chart.
How many pips can be made in EUR/USD?
2011: 2,000 pips
2014: 2,600 pips
2021: 1,800 pips
I just wanted to give something back. It's my pleasure when this helps only one person.
Attached File(s)
Catching monster waves.pdf
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