Lookback into a Yield Seeking Analytics: EUR Hit TargetDear Investors,
Goal
I often hear: "... but I learned from my mistakes." This phrase might be a kind emote of forgiving yourself, but you can learn much more from your successes. Today, I want to write more about an example of a success because I learned from it. I want to explain what I learned from this take profit and conclude the analytics because I know most of you never return to how an analytics you read concluded. In this follow-up analytics, I'll extend the chart of the previous setup and communicate the original data I didn't specify in that analytics. I also want to have this written because some of you prefer reading over watching my videos. In the meantime, I've released an open-source indicator on TradingView, and you'll see how this indicator could have extended or contradicted the analytics.
News & Sentiment Analytics
The initial analytics started with news analytics. I believe news can overwrite technical indicators. So, I usually begin my analytics with the news. For this purpose, I wrote some natural language processing algorithms. Some of you wrote to me, that you don't believe AI can outperform humans in supply/demand location and liquidity detection. Perhaps, that's true, but the fact is, while you commit your attention to one market and limited news, AI simultaneously processes hundreds of thousands of news from thousands of news agencies. From all these data, I emphasized the following in the analytics:
"Beyond technicals, the European Central Bank (ECB) has been cautious in raising interest rates to combat inflation, in contrast to the US Federal Reserve's more aggressive tightening cycle. This divergence in monetary policies has made the USD more attractive to yield-seeking investors."
I often extend news analytics with sentiment analytics. I could have written any combination of news, but I gave one as an example where sentiment analytics estimated a heavyweight.
Technical Analytics & Chart Patterns
In the video analytics, I used daily candles because I wanted to protect your attention from intraday noise. Nevertheless, the price action happens to be smooth. So, in this idea, I used 4-hour candles to better show the projection of how the price went into the take profit area.
Once I got an idea about a possible bearish trend from news and sentiment, I added my humble technical analytics knowledge to the setup. I noted the rising channel chart pattern that statistically, often breaks downward. You find the dotted purple trendlines on the chart. Furthermore, I calculated a demand zone between the two blue trendlines. I guessed the price could seek demand somewhere in this area. That's why you saw a falling arrow in the analytics. The trendlines themselves are the results of candle analytics, which is part of my technical analytics.
Indicators
In the signal idea, you couldn't see my Adaptive MFT Extremum Pivots indicator because I released this TradingView script after my video analytics. However, this script wasn't necessary to get a profitable vision. I added it to the update to note how the level where the price managed to fall aligns with the S3 support level, and the demand zone news-sentiment-pattern estimated aligns with the zone where the supports (S1-S3) are located. You can read the precise values in the indicator's table in the bottom right corner of the chart.
Results: +2.64% ROI, -0.18% drawdown, Trail Profit
Eventually, I added date and range computing arrows to the chart to show the results. It says a +2.64% profit over 45 bars (9 days, 12 hours). You can see the timestamp of the sentiment analytics above the candles: 01 December. You can also read the sentiment analytics idea in TradingView. See the relevant ideas. I used a stop loss at $1.102. In the worst-case scenario, I'd book a -0.18% drawdown, but the price never hit the negative limit. I don't specify the future price in this idea because I moved my stop loss down to act as a trail profit until the price decides to reverse, and I booked my profit.
It's not an investment advice. I don't claim mine was the only possible setup to take a profit from the price action. Historic results don't guarantee future returns. No indicator or analytics is inherently more superb than the others. Do your research. I only hope you learned a few practices from this idea you can use in your analytics, too.
Kind regards,
Ely
