Hey Traders so today was looking at the 10yr Treasury Bond and the 30 year and it looks like it just formed a 123 bottom formation on the charts. Add to that a 3 bar trendline and Bond Seasonality normally shows strength in the summer.
Now I am not a Bond Expert by any means and I could not tell you what the FED is going to do at their next meeting or if interest rates are going to fall or rise in the future.
But what I can say is that true Technical Analysts believe that almost everything fundemental that could happen is normally priced in the charts which is why historically we see these Seasonal Patterns over and over again year after year.
Does it work always? NO
But most of the time it does which in trading if we have most of the time on our side I consider it to be good enough edge to trade with risk management. So with that being said.
If bullish wait for 50% retracement of this big rally candle in the coming days and buy when it pulls back.
However if bearish wait for a break below support around 111.00
Always use Risk Management!
(Just in case your wrong in your analysis most experts recommend never to risk more than 2% of your account equity on any given trade.)
Hope This Helps Your Trading 😃
Clifford
Now I am not a Bond Expert by any means and I could not tell you what the FED is going to do at their next meeting or if interest rates are going to fall or rise in the future.
But what I can say is that true Technical Analysts believe that almost everything fundemental that could happen is normally priced in the charts which is why historically we see these Seasonal Patterns over and over again year after year.
Does it work always? NO
But most of the time it does which in trading if we have most of the time on our side I consider it to be good enough edge to trade with risk management. So with that being said.
If bullish wait for 50% retracement of this big rally candle in the coming days and buy when it pulls back.
However if bearish wait for a break below support around 111.00
Always use Risk Management!
(Just in case your wrong in your analysis most experts recommend never to risk more than 2% of your account equity on any given trade.)
Hope This Helps Your Trading 😃
Clifford
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.