Hello, great article! The charts such as the risk reversal are from refinitiv but the chart looks like one from tradingview. Do you use tradingview with refinitiv data?
Thank you a lot for another masterpiece. Question regarding the risk reversals. You list USDCHF and USDJPY as stronger. Am I correct that you mean that the CHF and JPY being stronger and not the currency pairs?
The risk reversals are always vs. the dollar, so the one for EUR is on EURUSD, the one for CAD is on USDCAD. If the risk reversal is going higher that means that the calls on that currency pair are getting more expensive relative to the puts, i.e. the options market is anticipating higher prices in that currency pair.
In the case of USDCHF and USDJPY, their risk reversals have gone up (while price hasn't), so the options market is pricing in that both currency pairs will go higher, i.e. USD higher and CHF and JPY lower.
Thank you for the wonderful weekly compilation!
What A/D line (TV-Code?) in TradingView are you using for the plot? There are so many and can't find the right one. Thanks!
Thanks!
The indicator is just called "Advance Decline Line" and it's listed under "Technicals".
It's not the original line where advancing and declining issues are just added/subtracted but I like it anyway. Here's the source code:
//@version=5
indicator(title = "Advance Decline Line", shorttitle="ADL", format=format.price, precision=2)
adlCalc(difference) => ta.cum(difference > 0 ? math.sqrt(difference) : -math.sqrt(-difference))
adl = request.security("(USI:ADVN.NY - USI:DECL.NY) / (USI:UNCH.NY + 1)", timeframe.period, adlCalc(close))
plot(adl, "Advance Decline Line")
Ingenious! Warm thanks for this!
Have a nice Sunday!
great coverage, thank you
Hello, great article! The charts such as the risk reversal are from refinitiv but the chart looks like one from tradingview. Do you use tradingview with refinitiv data?
Thanks!
Xenith is using Tradingview as a charting basis but with less features and without Pinescript.
Thank you a lot for another masterpiece. Question regarding the risk reversals. You list USDCHF and USDJPY as stronger. Am I correct that you mean that the CHF and JPY being stronger and not the currency pairs?
Thank you!
The risk reversals are always vs. the dollar, so the one for EUR is on EURUSD, the one for CAD is on USDCAD. If the risk reversal is going higher that means that the calls on that currency pair are getting more expensive relative to the puts, i.e. the options market is anticipating higher prices in that currency pair.
In the case of USDCHF and USDJPY, their risk reversals have gone up (while price hasn't), so the options market is pricing in that both currency pairs will go higher, i.e. USD higher and CHF and JPY lower.
Thanks a lot sir. awesome as usual!