Interest Rate Differential – IRD Definition

Silver is dropping: Technicals and Fundamentals (/SIU7)

Silver is dropping. A good short IMHO. Here's why:

Technicals

On the D1, you can see a really beautiful, repetitive descending sinusoidal wave forming. It is respecting its channel quite nicely. Lower highs and lower lows mean a definite southbound trend. I ran a Fibonacci extension off of the last wave, and since I bow to the temple of the Fibonacci Sweet Spot (the 0.5-0.618 zone), this puts the target price firmly in the $15.48-$15.16 target range for exit. Nature Respects the Fib. Note that we are at a support line right now between $16.25-$16.18. If it breaches this, it should drop nicely.
Check out this /SIU7 D1 chart
Remember that Previous Price Performance Probably Predicts Pending Principal Projections.

Fundamentals

For those of you who are new - let's learn some Forex. Metals are correlated to the JPY (Japanese Yen), gold more than silver, but both tend to follow the currency quite nicely. Yen up = metals up, and Yen dropping = metals dropping, almost to a T. Gold follows this almost rigidly, it is spooky how gold will mirror JPY almost to a tick. Now, most FX traders look at USDJPY... which means that when USDJPY drops, that means Yen is going up, which means metals should climb. Hence, metals are inversely correlated to USDJPY.
USDJPY is climbing. US inflation is what everyone is jabbing about - Dollar stronk(er) this week, at least in relation to the Yen. There is a "widening of the interest rate differential between U.S. Government Bonds and Japanese Government Bonds"; as well, there is an increasing demand for higher risk assets... which straight forward means that money will move away from metals and away from the Yen, both of which are seen as safe havens in tough times. Read on: https://www.fxempire.com/forecasts/article/usdjpy-fundamental-weekly-forecast-its-all-about-u-s-inflation-this-week-427595
Also, USDJPY produced a doji on the W1 chart, a decent reversal signal when correlated with other data. Higher time-frames produce stronger signals, and algos have more money and power than you ever will, trader..... and those AIs respect these levels very much. Check it out: https://www.fxstreet.com/analysis/usd-jpy-forecast-bullish-follow-through-likely-after-last-weeks-doji-201708070413
Would love to hear other trader's thoughts.
I'm short 1 contract of /SIU7. Don't coattail me without doing your own DD, if you lose money, it's your own fault, you should have stayed in school and gotten that plebe job like momma said, ya loser =)
Remember that Silver is a very highly leveraged asset, one tick = $0.005 and each tick is $25.00. This means that $1.00 movement in the price of silver is worth $5,000.00 per contract!! Please protect yourself with stops and don't be afraid to take profits. Silver has tickled many a traders greed gland, usually rectally, and this has led to massive destruction more than once....
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Introducing ΔMP & Σ(ΔMP) Trading Indicators to the Web

Introducing ΔMP & Σ(ΔMP) Trading Indicators to the Web
In my latest eBook, I introduced ΔMP, a technical analysis tool that can be used in any financial asset class and in any timeframe. The mission of ΔMP is to measure and illustrate the historical momentum of any Forex pair, or any other financial-traded asset.
Forming ΔMP: ΔMP is formed by summarizing the historical divergence between closing rates and intraday ranges.

-ΔMP Calculation
This is how ΔMP works:
ΔMP reflects the daily difference between the Closing Price and the Mean Price
□ Where:
Mean Price = (Daily High + Daily Low) / 2
ΔMP = {(Closing Price – Mean Price) / Mean Price} %

-The Importance of ΔMP
ΔMP expresses the divergence between the closing price and the mean price. Positive ΔMP values in a row indicate that the price of an asset continuously closes near the highest intraday price. That is a sign of a positive momentum regarding the dynamics of intraday demand/supply. In general, when ΔMP shows highly positive values for a certain period, the odds of winning for that period are better.

-Σ(ΔMP) Calculation
ΔMP is also used for drawing momentum charts, by summarizing historical ΔMP values and forming Σ(ΔMP) as follows:
□ Σ(ΔMP) for N Periods
ΔMP(N) = {(Closing-1 Mean-1)/Mean-1)%} + {(Closing-2 Mean-2)/Mean-2)%}… + {(Closing-N Mean-N)/Mean-N)%}

-Σ(ΔMP) Example on USDJPY
The following chart area incorporates a USDJPY weekly chart for the period 1996 to 2018 and a Σ(ΔMP) chart for a shorter period (2000 to 2018).
Chart-Area: Upper USDJPY Weekly (W1) chart and Lower Σ(ΔMP) chart
Σ(ΔMP) on USD/JPY
Observations regarding Σ(ΔMP):
(1) The above Σ(ΔMP) chart includes a Linear Trendline (R²=0.8893), the higher the R-squared, the better the model fits the data
(2) The linear trendline seems to work as a support/resistance trendline, which is definitely out of the ordinary
(3) After 2004, the Σ(ΔMP) chart shows a strong bullish formation for USDJPY, and maybe that can be contributed to the differential of growth rates between US and Japan, but also to the differential of interest rates between the two economies

Here is the full article: https://tradingcenter.org/index.php/train/mp

■ ΔMP & Σ(ΔMP) -Τhe Latest Technical Indicator by TradingCenter
Giorgos Protonotarios, Financial Analyst,
Qexpert & TradingCenter.org
submitted by Qexpert to u/Qexpert [link] [comments]

Why are Interest Rates so Important for Forex Traders ... How Interest Rate Differentials (IRD) Work INTEREST RATE PARITY THEORY FOREX BY CA PAVAN KARMELE ... Lesson 2 - Earning interest in Forex and other portfolio ... Interest Rate Parity Theory (Forex)  CA Final SFM (New ...

This is how forex interest rate differentials can change a lot of things. Carry trade. Forex traders try to take advantage of the below-zero interest rates in some countries with carry trade. The forex traders are selling currencies having negative interest rates like the euros and Japanese yen and using the money to purchase currencies with a high-interest rate like the Indian rupee, Mexican ... Interest is earned with a trade when the shorted currency charges less interest than it is invested in with the long currency. A good example is a long NZD/JPY Forex trade. If the trader shorted JPY at 0.1% per year and when long NZD at 3.5% per year the trade would earn 3.5% – 0.1% = 3.4% per year. This 3.4% is the Interest Rate Differential of the long NZD/JPY Forex trade. Keep in mind ... Meaning / Definition of Rate Differentials. Categories: Forex, The difference between the interest rates of two countries. The country with the higher interest rate will attract investment that will be financed in the lower rate country. Glossary > Forex > interest rate differential (IRD) interest rate differential (IRD) The difference between the return achieved by depositing in one currency versus the money paid for borrowing in another. forex traders use the interest rate differential and the concept of interest parity to determine forward forex rates and to compute forex swaps. It also determines the amount that an ... In the foreign exchange market, the interest rate differential (IRD) refers to the difference in interest rates between two similar interest-bearing currencies. In the spot foreign exchange market, this pertains to the difference in interest rates in a pair. For example, if the Australian dollar has an interest rate of 4.50% and the Japanese yen has an interest rate of 0.10%, then the interest ... Forex traders look to make the most of the ... These trades, which on paper have very large interest rate differentials, could easily end up being risky, especially if the economic pain found in emerging market currencies continues or becomes more severe. While the carry trade does earn interest on the interest rate differential, a move in the underlying currency pair spread could easily fall ... Interest rate differentials simply measure the difference in interest rates of two different instruments. IRD is most often used in fixed income, forex, and lending markets.

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Why are Interest Rates so Important for Forex Traders ...

We simplify your financial learnings. Subscribe here to learn more of Strategic Financial Management: https://goo.gl/HTY5SN CA Final SFM Fast Track Course:... FOR PEN DRIVE CLASSES CONTACT NO. 6261676836, 9977223599, 9977213599 E-MAIL- [email protected] Why are Interest Rates so Important for Forex Traders? Corvin Codirla, ex-hedge fund manager and trader comments. And why are interest rate decisions a big d... How Interest Rate Differentials (IRD) Work. How Interest Rate Differentials (IRD) Work. Skip navigation Sign in. Search . Loading... Close. This video is unavailable. Watch Queue Queue. Watch ... Another unique factor in forex trading is Interest, or carry. Each currency pair has an interest payment or charge associated with holding the position long ...

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