The Way of Investment (Special Episode 6)

The Way of Investment (Outtake Volume6)

“In FX, a late counterclockwise move?!”

When looking at economic calendar events, events such as policy rate announcements and statements occur quite frequently. By using the “Currency Strength Indicator” around the timing of these announcements,“FXlate counterclockwise movecan be realized.

1.    Case 7 (AUD)

2022Year9Month6Day13:30（JST）, the Reserve Bank of Australia(RBA) raised its policy rate by0.5 percentage points,raising it to2.35％, reaching its highest level in 7 years. Further rate hike possibilities were also suggested. As a result, the exchange rate fluctuated. The figure below is the 5-minute chart of AUDJPY around the announcement.

Immediately after the announcement, a bullish candle with a large lower shadow appeared, causing strong volatility. Draw a horizontal line at the low of the volatility wicks, and if price breaks it, place a buy order in the direction of the breakout with a late counterclockwise move. Draw a diagonal uptrend line; if price breaks below it, take profit. This alone yielded about55PIPS of profit.