I guess not a few traders have difficulties these days in market due to US government bond’s yield fluctuation. Yesterday dollars strong, today dollars weak… so what’s next?
In order to catch up US treasury yield situation, I have developed this indicator which shows changes in 10 year treasury yield.
It calculate changes from last candle stick in percentage based on timeframe you open. If changes(%) cross over/under upper band/lower band(can be parameterized), signal will be shown. (Alert can be set, too)
The following chart is AUDUSD 4 hour chart. It’s been sideways since begining of Mar.
Looking at this, some tendencies can be observed. If 10 year treasury yield changes more than 2%(upper band/lower band), rates tend to turn the way most probably due to US dollars’ strong buying/selling pressure.
This trend might go on until the yield situation gets stable and what we can do is to closely monitor this yield changes and try not to enter a trade within sideways until the market signal clear directional movement.