RouteMaster: Yes. We haven't yet discussed that you can look at every currency from two different Investment Perspectives. So far we have looked at Demoland's currency in the usual way - against the US Dollar. However as the dollar has its own behavioural pattern, there is a need for a global average. We use Special Drawing Rights at the IMF in that role.

For this chart we have used both a different investment perspective and a shorter timescale. In fact you can set any combination of the variables to suit your preferences.

As it happens the message from this chart is not much different from that of the very first chart. A very worthwhile Sell signal was flashed against the US$ in 1996. The good profit on the short trade stayed intact despite a brief whipsaw on the long side that only broke even.

[ Site Map ] [ Home ]
[ Demoland ] [ Forex in Demoland ]