Yield curve there are many, such as government bonds, the benchmark yield curve, deposit yield curve, interest rate swaps and credit yield curve yield curve (credit curves) and so on. Benchmark yield curve and other securities on the market of reference, the securities must be consistent with liquidity, size, price, availability, velocity and other characteristics of the standard.

Yield curve is not static, at any time can happen fast changes. For example, the central bank officials in a few words can lead to higher inflation expectations, so that long-term bond prices have fallen faster than short-term bonds.

Under normal circumstances, the yield curve rising from left to right, because the longer term rate of return would be higher to reflect the investment risks and increase with the lengthening period of the case. Of such yield curve, if it increases in long-term yields higher than short-term rate of return, yield curve becomes steeper.

Inversion of the yield curve is a decline from left to right, reflecting the short-term rate of return higher than the long-term rate of return anomalies. This may be because investors expect the inflation rate to decline in the long run, or the supply of bonds will be substantially reduced, both the expected rate of return will be down.
    
    On interest rates, financial commentators often said that the interest rate path, or down, as if every move in interest rates are the same. In fact, if a different year bonds, the interest rate trend will be different, a long period of interest rate and short term interest rate movements can be split. The most important thing is the overall yield curve shape and curve on the economy or market trends in the future inspiration.

Would like to find out interest rates from the yield curve traces of the investors and companies are closely observe the shape of the curve. Yield curve is based, is that you buy in the near future, medium and long-term treasury bonds, the proceeds after the rate of return. Curves allows you to get back in accordance with holders of bonds until the principal amount of the year, to compare bond yields.

The shape of yield curve is based on the straight shaft connected to a different point of Treasury bond yields as well as in the horizontal axis of the bond formed-year point. Now you can see above a bit steep yield curve, in which year bonds yield more than three-month short-term treasury bonds is nearly. The difference between these two types of bonds are usually about, if the difference between the percentage of higher than this, that said the economy is expected to improve in the future.

Steep yield curve in general appeared in pace with the economic recession of the early stage of economic expansion. At this point, economic stagnation and short-term interest rates have been suppressed, but the One once to re-establish the growth of economic activity the demand for capital, and the fear of inflation, interest rates generally began to rise.

Traditionally, the inverted curve, said the economy would soon slow down. Financial institutions such as banks typically borrow short-term interest rates and will be a long-term lending money. Generally speaking, when the long-term rates higher than short-term interest rates and relatively high between the two, in this case, the bank’s loans are usually low. In general, the lower the amount of corporate lending will lead to credit crunch, business is slow, and economic decline.

This is a typical view. The latest case is different, and perhaps more complex than ever. Recent decline in U.S. Treasury long-term bonds issued, and in the past few years, when the first time in budget surpluses over the years in Washington to begin paying some of the long-term bonds have not been paid.

Reduce the long-term bond issuance prompted investors to buy longer-term bonds, and thus raised the long-term bond prices and lowered its rate of return, the question arose inverted curve. Bond prices and yields the opposite direction. However, the year the Federal Reserve interest rate cut carried out radical measures in the case of short-term rates down, return to the traditional increase in yield curve shape.

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Many investors are accustomed to watching people do a single real-time plan to do, real-time plan to take no action, they jumped into the market, it was also planned according to pre-purchase price immediately after the figure Xun continued falling, cut rush orders, which are do not understand the performance characteristics of real-time map. A major role in real-time graph, only price is an accurate record of its trend direction, at any time to change. Under normal circumstances, real-time map of the fluctuations are relatively small.

Foreign exchange price changes, is essentially undulating, rising in the big waves, there will be many mistakes down the small wave parameters during. Therefore, the hours of the basic plan was rally, the 5-minute chart price may fall, while the real figure may be within 5 minutes Change many times, therefore, experienced investors who will not let themselves be carried away immediately Map . Some investors who planned an order, but also consciously looking to avoid an immediate plan to avoid interference with emotion.

In real-time map for detailed study, can be found in addition to its exact characteristics of volatility, there are also sensitive features. For example, when the German mark exchange rate is stronger than sterling cross trading, investors hold the hands of pounds to buy list, when the pound rise in price resistance point, investors may refer to marks real-time map, because it marks a strong, and its real-time map may be the first to break through the resistance point, then you having to pay £ unwinding in a hurry.

In addition, when according to plan into a single, but the price did not identify the resistance point, there dozens of small losses, it can closely observe the real-time maps, a new breakthrough in price if any, that wish to consider the loss of a single cut.

Sensitive and changeable than the real-time map, the map looked cool 5 minutes more, 5-minute graph is characterized by resistance point, anchor of the price sensitive, suitable for grasping associate into a single, out of a single time.

Strictly speaking, the technical analysis of the many methods used in the 5 minutes chart, its reliability should be playing a big discount, because the characteristics of 5-minute figure is only the resistance point, strong point responsive, and its ups and downs of change are usually not the meaning of the direction of the trend. 5 minutes alone work out the resistance point, intensity is usually not much.

Most investors are accustomed to doing short-term, especially the day before the close on the liquidation of short-term operation. For such investors, they do the best single tool is not real-time map, 5-minute chart, but the 15-minute maps, hours Fig.

  2, people. The foreign exchange market in the meaning of those who should have been three: that his opponents, referees. Foreign exchange market is a no enemies and no friends in the battlefield, when you put, your opponent is to call people.

  3, the price. Fundamentals with the law of value to explain the price fluctuations; technology were established, such as gold division, percentages, the trend line, and so a variety of models to try to reveal the price movement patterns. Prices have absolute and relative distinction. Determine your gain or loss is the relative prices. A reference to the price, you can not avoid time.

  4, the relationship between chance and necessity, determines the fuzzy characteristics of the foreign exchange market. Accordingly, our best approach is to accurately deal with problems and ambiguous in application.

  5, balance everywhere, you should be thinking of carrying out a balanced solution to the problem has always been on.

  6, with the general view of energy characteristics of the foreign exchange market will lead to a lot of problems solved.

  7, the foreign exchange market in the repetitive, most often reflected in the cyclical characteristics; Exchange continuity of city, most often reflected in the trend characteristics. Cyclical, the trend is undoubtedly there, and seems to find the truth from us recently. Period of time, the trend of space, perhaps with the with the time and space, you can keep pace with the concept of energy, we will be find the answer.

  8, we do not need to take into account the foreign exchange market in the study than people, time, price, energy, smaller yuan. Their own concept of universality, comprehensiveness indisputable geography should become the basic elements of the foreign exchange market.

  9, time. Five kinds of people can at least mention the time understanding: the nature of life gone forever felt the time: Newton’s absolute time of classical mechanics: the theory of relativity in the relative time; “assuming nothing else changed, then things back again to its original state, “the cycle of time; statistical mechanics an infinite increase in the entropy, with the direction of the arrow of time. One tan as long as human thought must be used in time; time describing things, changes in the human mode of thinking. Special emphasis on human beings so much time, but rather that human beings are more concerned about things at any given time changes. Things are obviously changing repeating itself should contain the time factor. Want to solve the problem, we must understand the most profound time in the role of development and changes of things. Who can say that the stock market was established in line with the movement time model, who can be the same as Gann once and for all solve the problem.

  10, the energy. Only the energy in terms of the universality of the talent and time and space compared to. All changes are in the world can be summed up as being in the energy space and time changes. Foreign exchange market, the smallest unit of energy should be in contact with the time and space. Energy may be the foreign exchange market we open the door of a key.

  11, I said that the trend is not the law, because as the continuation of the trend, the probability of continuation of this trend will become increasingly smaller, the trend is not whether it is useful and trends in the law are two different things, in the currency in which people attach importance to the reason why the trend because it is very useful, chances of winning a larger share of the two is certainly wrong in most people, I want to correct a few people, while the trend is not told me.

  12, if an ant crawling on a tightrope do not know at the end, there will always fall to the day, and when the rope at the end, so I think the trend is not the law!

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