TradingView Setup Tutorial: How To View Nominal Yields, Real Yields & Inflation Expectations

Analyst Team

Introduction to TradingView

When it comes to analyzing financial markets, TradingView is a popular platform that provides traders with powerful tools and features. This section will introduce you to TradingView and highlight the benefits it offers for Forex analysis.

What is TradingView?

TradingView is an online charting platform that allows traders to access a wide range of financial markets, including stocks, commodities, cryptocurrencies, and Forex. It provides users with interactive charts, technical analysis tools, and a community of traders where ideas and insights can be shared.

TradingView is known for its user-friendly interface and intuitive design, making it accessible for both beginners and experienced traders. It offers a wide range of charting options, including various chart types, timeframes, and indicators, allowing traders to customize their analysis according to their specific needs.

Benefits of Using TradingView for Forex Analysis

TradingView offers several benefits that make it an ideal choice for Forex analysis:

Accessibility: TradingView is a web-based platform, which means you can access it from any device with an internet connection. Whether you prefer to trade from your desktop, laptop, or mobile device, TradingView provides a consistent and seamless experience across different platforms.
Charting Tools: With an extensive collection of technical analysis tools and indicators, TradingView allows you to perform in-depth analysis of currency pairs. From trend lines and Fibonacci retracements to moving averages and oscillators, you can apply a wide range of tools to identify potential trading opportunities.
Community Interaction: TradingView has a vibrant community of traders who share ideas, analysis, and trading strategies. You can follow other traders, discuss market trends, and even publish your own analysis for others to see. This collaborative environment can provide valuable insights and foster learning among traders.
Real-Time Data: TradingView provides real-time and historical market data, ensuring that you have access to the latest price information. This allows you to make informed trading decisions based on up-to-date market conditions.

By utilizing the features and tools offered by TradingView, Forex traders can enhance their analysis and make more informed trading decisions. In the following sections, we will explore how to set up TradingView for yield and inflation analysis, which can provide valuable insights into the Forex market.

Setting Up TradingView for Yield and Inflation Analysis

Before diving into yield and inflation analysis on TradingView, it’s essential to set up your account and familiarize yourself with the platform. This section will guide you through the process of creating a TradingView account, navigating the TradingView platform, and customizing your TradingView workspace.

Creating a TradingView Account

To get started with TradingView, you’ll need to create an account. Visit the TradingView website and click on the “Sign Up” button. You can create an account using your email address or sign up with your Google or Facebook account. Follow the prompts to complete the registration process and set up your account.

Once you have created an account, you will have access to a free version of TradingView with limited features. However, you can choose to upgrade to a paid subscription for additional functionality and advanced analysis tools.

Navigating the TradingView Platform

After logging into your TradingView account, you will be greeted with the platform’s user-friendly interface. The main components of the TradingView platform include the charting area, the sidebar, and the toolbar.

The charting area is where you will perform most of your analysis. Here, you can view and analyze different financial instruments, including currency pairs, stocks, and bonds. You can customize the timeframes, add technical indicators, and draw trendlines to enhance your analysis.

The sidebar provides access to various tools and features, including watchlists, indicators, and drawing tools. You can access these options by clicking on the respective icons in the sidebar. The toolbar, located at the top of the platform, allows you to perform actions such as saving your analysis, sharing it with others, and adjusting chart settings.

Customizing your TradingView Workspace

TradingView offers a high degree of customization, allowing you to tailor your workspace to suit your preferences. You can modify the layout, color scheme, and the specific tools and features displayed on your screen.

To customize your workspace, click on the “Layouts” button in the toolbar. From here, you can choose from pre-set layouts or create your own custom layout. You can also adjust the color scheme by selecting different themes available in the “Color Scheme” menu.

In addition to layout and color customization, TradingView allows you to add and remove various panels, such as watchlists, economic calendars, and news feeds. You can access these options by clicking on the “Add” button in the toolbar.

By customizing your TradingView workspace, you can create an environment that suits your analysis needs and enhances your trading experience.

Now that you have set up your TradingView account, familiarized yourself with the platform, and customized your workspace, you are ready to delve into the world of yield and inflation analysis. In the following sections, we will explore how to view nominal yields, real yields, and inflation expectations on the TradingView platform and understand their implications for forex trading.

Viewing Nominal Yields

To gain valuable insights into the forex market, it is essential for Forex Traders to understand and analyze nominal yields. Nominal yields refer to the interest rates or yields on fixed-income investments before adjusting for inflation. TradingView provides a user-friendly platform that allows you to easily view and interpret nominal yield data. Let’s explore how you can add yield indicators to your chart and interpret the information provided.

Adding Yield Indicators to your Chart

TradingView offers a wide range of yield indicators that you can add to your chart for analysis. To add a yield indicator, follow these steps:

Open the TradingView platform and navigate to your desired chart.
Click on the “Indicators” button located at the top of the chart.
In the search bar, type the name of the yield indicator you want to use, such as “US 10-Year Treasury Yield” or “German Bund Yield.”
Select the desired yield indicator from the search results.
Adjust any customizable settings, such as timeframes or specific parameters, if applicable.
Click the “Apply” button to add the yield indicator to your chart.

Once added, the yield indicator will display the nominal yields on your chart, allowing you to analyze and monitor the interest rates or yields of specific bonds or securities.

Interpreting Nominal Yield Data

Interpreting nominal yield data is crucial for understanding the current market conditions and making informed trading decisions. Here are a few key points to consider when analyzing nominal yield data:

Yield Levels: Nominal yields indicate the level of interest rates or yields for a particular bond or security. Higher yields generally suggest higher returns but may also indicate higher risk.
Yield Spreads: Comparing the yields of different bonds or securities can provide insights into market sentiment and risk appetite. For example, the yield spread between two government bonds can indicate the perceived risk associated with each country’s economy.
Yield Changes: Monitoring changes in nominal yields over time can help identify trends and potential market shifts. Rising yields may indicate expectations of higher inflation or a stronger economy, while falling yields may suggest concerns about economic growth or deflationary pressures.

By closely analyzing nominal yield data and combining it with other fundamental and technical analysis tools, you can gain a better understanding of market dynamics and potentially identify trading opportunities. It’s important to note that nominal yields are just one piece of the puzzle, and it’s essential to consider other factors that influence currency movements. If you’re interested in learning more about the correlation between bonds and currencies, check out our video guide on why bonds and currencies are correlated.

In the next section, we will delve into the analysis of real yields, which take into account inflation, providing a more comprehensive view of the market. Stay tuned!

Analyzing Real Yields

When it comes to forex trading, understanding real yields is crucial as they provide valuable insights into the relationship between interest rates and inflation. Real yields represent the actual return on an investment after accounting for inflation. In this section, we will explore how to calculate real yields on TradingView and assess their impact on forex trading.

Calculating Real Yields on TradingView

To calculate real yields on TradingView, you can follow these steps:

Select the desired bond yield indicator: TradingView offers a variety of bond yield indicators that you can add to your chart. Choose the indicator that corresponds to the specific bond or government debt you are interested in.
Adjust for inflation expectations: To calculate real yields, you need to take into account inflation expectations. You can add an inflation expectation indicator to your chart. This will provide you with the necessary data to adjust the nominal yield for inflation.
Subtract inflation expectation from the nominal yield: Once you have both the nominal yield and the inflation expectation data on your chart, subtract the inflation expectation from the nominal yield. The result will give you the real yield, which represents the true purchasing power of the investment.

It’s important to note that real yields are dynamic and can change based on market conditions and expectations. Regularly monitoring and analyzing real yields can help you make informed trading decisions.

Assessing the Impact of Real Yields on Forex Trading

Real yields play a significant role in forex trading as they influence currency valuations. When real yields rise, it generally attracts foreign investors seeking higher returns. This increased demand for a currency can lead to its appreciation in the forex market.

Conversely, when real yields decrease, it may discourage foreign investors and result in capital outflows from a country. This can lead to a depreciation of the currency in the forex market.

By monitoring real yields and their impact on currency valuations, forex traders can gain valuable insights into potential trading opportunities. It’s important to consider other factors that influence currency prices as well, such as central bank policies, economic indicators, and geopolitical events. For a comprehensive understanding of the relationship between bonds, yields, and currencies, you may find our article on why are bonds and currencies correlated? helpful.

Understanding real yields and their implications on forex trading allows you to make more informed trading decisions. By incorporating real yield analysis into your overall fundamental analysis, you can gain a deeper understanding of currency movements and potentially identify profitable trading opportunities.

Understanding Inflation Expectations

Inflation expectations play a crucial role in the world of forex trading as they provide insights into the future movements of currencies. By understanding and analyzing inflation expectations, traders can make informed decisions about their forex positions. In this section, we will explore how to add inflation expectation indicators to your chart and interpret the data they provide.

Adding Inflation Expectation Indicators to your Chart

TradingView offers a wide range of indicators that can help you track and visualize inflation expectations. To add these indicators to your chart, follow these steps:

Open the TradingView platform and navigate to the chart you want to analyze.
Click on the “Indicators” button located at the top of the chart. This will open a drop-down menu with a list of available indicators.
In the search bar, type in the name of the specific inflation expectation indicator you want to add, such as “CPI Expectations” or “Inflation Breakeven Rate.”
Select the desired indicator from the search results and click on it to add it to your chart.

Once added, the indicator will appear on your chart, providing you with valuable information about inflation expectations.

Interpreting Inflation Expectation Data

Interpreting inflation expectation data is essential for understanding how it may impact currency movements. Here are a few key points to consider:

Increasing Inflation Expectations: If inflation expectations are rising, it suggests that traders anticipate higher future inflation rates. This may lead to a decrease in the value of a currency as it erodes its purchasing power. Traders may consider adjusting their positions to reflect a potential weakening of the currency.
Decreasing Inflation Expectations: Conversely, if inflation expectations are decreasing, it indicates that traders expect lower future inflation rates. This could potentially strengthen a currency as it maintains or even enhances its purchasing power. Traders may look for opportunities to capitalize on a stronger currency.
Comparison to Central Bank Targets: It’s crucial to compare inflation expectations to the target set by the relevant central bank. Central banks often have an inflation target, and deviations from that target can influence monetary policy decisions, which, in turn, affect currency values. Understanding the deviation of inflation expectations from the central bank target can provide valuable insights for forex traders.

By adding inflation expectation indicators to your chart and interpreting the data they provide, you can gain a deeper understanding of how inflation expectations may impact currency movements. Remember to consider other factors, such as economic data releases and central bank actions, to form a comprehensive analysis of the forex market.

As you explore the TradingView platform for analyzing yields and inflation, it’s essential to be aware of the variety of tools and indicators available. Utilize the platform’s customization options to tailor your workspace to your specific needs. For more advanced tips and tricks, check out our section on using TradingView’s drawing tools for analysis and saving and sharing your TradingView analysis.

Understanding inflation expectations is just one piece of the puzzle when it comes to forex analysis. By integrating inflation expectations into your overall trading strategy, you can make more informed decisions and potentially improve your trading outcomes.

Advanced Tips and Tricks

As you become more familiar with TradingView for analyzing yields and inflation, there are several advanced tips and tricks you can utilize to enhance your analysis. In this section, we will explore two key features: using TradingView’s drawing tools for analysis and saving and sharing your TradingView analysis.

Using TradingView’s Drawing Tools for Analysis

TradingView offers a variety of drawing tools that can be helpful for technical analysis and identifying patterns in the data. These tools allow you to mark up your charts and add annotations. Here are a few common drawing tools you can utilize:

Trendlines: Trendlines help you identify the direction and strength of a trend. You can draw trendlines by connecting consecutive highs or lows on the chart.
Fibonacci Retracement: Fibonacci retracement levels can be used to identify potential support and resistance levels. By drawing Fibonacci retracement levels from swing highs to swing lows, you can identify key levels where price may reverse.
Horizontal Support and Resistance Levels: Drawing horizontal lines at significant price levels can help you identify areas of support and resistance. These levels can act as barriers where price may reverse or consolidate.
Channels: Drawing channels can help you visualize and trade within a range. Channels consist of two parallel trendlines that encompass price movement.

These drawing tools can be accessed in the TradingView toolbar. Experiment with different drawing tools to identify patterns and trends that may influence your trading decisions.

Saving and Sharing Your TradingView Analysis

Once you have conducted your analysis on TradingView, you may want to save and share your findings with others. TradingView offers several options for saving and sharing your analysis:

Save Chart Layout: You can save your chart layout, including all the indicators and drawings, by clicking on the “Save” button in the toolbar. This allows you to access your analysis at a later time or share it with others.
Publish Idea: If you wish to share your analysis publicly, you can publish it as an idea on TradingView. This allows other traders to view and comment on your analysis. To publish an idea, click on the “Publish” button in the toolbar and follow the prompts.
Share Chart Snapshot: If you want to share a snapshot of your chart without sharing the entire analysis, you can use the “Share” button in the toolbar. This generates a unique URL that you can share with others.

By using these features, you can save and share your analysis with fellow traders or refer back to it for future reference. Remember to include relevant information and explanations when sharing your analysis to provide context for others who may be viewing it.

As you continue to explore and utilize TradingView’s advanced features, you’ll gain a deeper understanding of how to effectively analyze yields and inflation in the forex market. Experiment with different tools and techniques to refine your analysis and improve your trading decisions.

Conclusion

In this comprehensive guide, we have explored the TradingView setup tutorial for analyzing yields and inflation in the forex market. By utilizing the powerful tools and features offered by TradingView, forex traders can gain valuable insights into nominal yields, real yields, and inflation expectations.

To recap, we started by introducing TradingView, a popular platform for technical analysis in financial markets. We discussed the benefits of using TradingView for forex analysis, highlighting its user-friendly interface and wide range of customizable features.

Next, we delved into the process of setting up TradingView for yield and inflation analysis. We covered the steps to create a TradingView account, navigate the platform, and customize your workspace to suit your specific needs.

Moving on, we explored how to view and interpret nominal yields using TradingView. We discussed how to add yield indicators to your chart and analyze the data to gain insights into market sentiment and interest rate expectations.

We then shifted our focus to real yields and their impact on forex trading. We explained how to calculate real yields on TradingView and emphasized the importance of considering real yields when making trading decisions.

Additionally, we explored the concept of inflation expectations and how they can be analyzed using TradingView. We learned how to add inflation expectation indicators to your chart and interpret the data to assess the market’s expectations for future inflation.

To enhance your analysis, we provided advanced tips and tricks, such as using TradingView’s drawing tools for in-depth analysis and saving and sharing your TradingView analysis with others.

By following the TradingView setup tutorial outlined in this guide, forex traders can gain a deeper understanding of yields and inflation, enabling them to make more informed trading decisions. Remember to refer back to this guide whenever you need a refresher on setting up TradingView for yield and inflation analysis.

For more educational resources and guides on forex trading, check out the following links:

With the knowledge and tools acquired through TradingView, you are well-equipped to navigate the complexities of yield and inflation analysis in the forex market. Happy trading!