The Way of Investment (Extra Chapter 4)

The Way of Investment (Bonus Edition Part4）

“FXPlaying the Game After the Fact?!”

When looking at the economic indicator event calendar, events such as policy rate announcements and statements occur quite frequently. By using a “currency strength/weakness indicator” around the timing of these releases,“Playing the Game After the Fact in FX”can be realized.

1.    Case 5 (NZD)

On 2022month17day11:00（JST）,RBNZ (Reserve Bank of New Zealand) held a policy meeting and decided to raise rates by0.50%.2.50% then raised to3.00%.decreased.

The figure below is the 5-minute chart ofNZDUSD around the time of the announcement.

Immediately after the announcement, there was a sharp swing with a large bullish candle. Draw a horizontal line at the wick top of the volatility, and if it breaks, place a sell order in the direction of the breakout using“Playing the Game After the Fact”. Draw an oblique downward trend line as well; if it breaks above this line, take profit. Doing this alone yielded about of profit.