OPEN-SOURCE SCRIPT
Inverted Yield Curve (US01Y/US10Y Ratio)
This indicator calculates and visualizes the ratio between the US 1-Year Treasury Yield (US01Y) and the US 10-Year Treasury Yield (US10Y). It provides a clear visual representation of the relationship between short-term and long-term interest rates, which can be a valuable tool for analyzing market conditions, potential recessions, or shifts in economic outlook.
Features:
US01Y/US10Y Ratio: The indicator plots the ratio between the 1-Year and 10-Year US Treasury Yields as a smooth curve.
Dynamic Highlighting: Portions of the curve where the ratio exceeds 1 are highlighted in red, making it easy to identify periods where short-term rates surpass long-term rates—a key signal often associated with economic shifts or inversions.
Customizable Appearance: The main curve is plotted in a light blue color for clear visibility against most chart backgrounds.
Use Cases:
Yield Curve Analysis: This indicator helps traders and analysts monitor the yield curve, specifically focusing on the relationship between short-term and long-term interest rates.
Recession Signals: An inverted yield curve, where the ratio exceeds 1, can be an early warning signal for potential economic downturns.
Market Sentiment: Use the indicator to gauge shifts in investor sentiment by tracking changes in the yield curve over time.
How to Use:
Add the script to your TradingView chart.
The light blue curve represents the ratio of US01Y/US10Y.
Red highlights indicate periods where the ratio exceeds 1, signaling potential yield curve inversion.
This indicator is ideal for traders, investors, and economists looking to incorporate yield curve analysis into their trading strategies or economic forecasts.
Features:
US01Y/US10Y Ratio: The indicator plots the ratio between the 1-Year and 10-Year US Treasury Yields as a smooth curve.
Dynamic Highlighting: Portions of the curve where the ratio exceeds 1 are highlighted in red, making it easy to identify periods where short-term rates surpass long-term rates—a key signal often associated with economic shifts or inversions.
Customizable Appearance: The main curve is plotted in a light blue color for clear visibility against most chart backgrounds.
Use Cases:
Yield Curve Analysis: This indicator helps traders and analysts monitor the yield curve, specifically focusing on the relationship between short-term and long-term interest rates.
Recession Signals: An inverted yield curve, where the ratio exceeds 1, can be an early warning signal for potential economic downturns.
Market Sentiment: Use the indicator to gauge shifts in investor sentiment by tracking changes in the yield curve over time.
How to Use:
Add the script to your TradingView chart.
The light blue curve represents the ratio of US01Y/US10Y.
Red highlights indicate periods where the ratio exceeds 1, signaling potential yield curve inversion.
This indicator is ideal for traders, investors, and economists looking to incorporate yield curve analysis into their trading strategies or economic forecasts.
Script open-source
Dans le plus pur esprit TradingView, l'auteur de ce script l'a publié en open-source, afin que les traders puissent le comprendre et le vérifier. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais la réutilisation de ce code dans une publication est régie par nos Règles. Vous pouvez le mettre en favori pour l'utiliser sur un graphique.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.