M2 Inverse HnS - Inflation Rate set to increase - 1M QuantRsi Long

M2 Money StockFRED

Description

⋅ Dec 28, 2018 2:46 AM

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:
tradingview.com/script/tXj7GPoY-QuantRsi-Quantized-Relative-Strength-Index-SNOW-CITY/

Applied to the Monthly M2 chart.

Looking at the indicator as well as the fibs (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.