SNOW_CITY

M2 Inverse HnS; Inflation rate increase - QuantRsi 1M

Long
SNOW_CITY Zaktualizowano   
FRED:WM2NS   M2 Money Stock
From investopedia:
"Generally speaking, inflation occurs if M2 money supply expands faster than the rate of productive growth in the overall economy"

What I'm looking at here is a classical charting pattern painted by the QuantRsi:

With the QuantRsi applied to the Monthly M2 chart, a pattern is painted which can be used for technical analysis and classical charting.

Looking at the indicator as well as fibs drawn (log scale chart, correct fib tool used to prevent this issue:
https://getsatisfaction.com/tradingview/topics/fibonacci-retracements-work-incorrectly-in-log-scale)

the M2 money stock looks like it is ready for a large increase sometime around 2020-2021.

This, coupled with slowed economic growth from rising interest rates, will result in increasing dollar inflation.

Because HnS patterns often have continuation when the neckline is broken, a QRsi value of +7 for M2 on the Monthly chart would confirm this idea.

Based solely on technicals, I believe that the inflation velocity will increase well in to 2025-2030. This coincides with fundamental analysis and other economic forecasts.
Zlecenie aktywne:
THis is happening for real!
seekingalpha.com/art...ding-26x-rate-of-qe1

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