Can’t believe the indicator I get asked about the most is actually the “Three Lines Converge” — pure voodoo stuff.
On September 5th at 20:30, the August unemployment rate and non-farm payroll data drop. This is another key macro event that could heavily impact the Fed’s September rate cut decision and the market’s expectations for future cuts.
I checked out the analysis from some macro experts. The gist is: if employment data is super strong, rate cut expectations drop—bearish. If the data is really weak, it sparks recession or stagflation fears—still bearish.
Maybe I’m missing something, but honestly, it feels like no matter what the numbers say, the only thing that matters is how the market interprets them. What will the market do in that moment? As someone who’s a macro noob, all I can say is: it’s a total mystery.
There’s a saying: “Whoever tied the bell on the tiger must untie it.” Maybe the answer to this mystery is hidden in the voodoo itself? So, once again, I had to consult the stars...
(Pic 1)
Let’s recap the last time I looked at the “Three Lines Converge”: between Aug 22 and Sep 7, the blue and green lines were out of sync. Based on past experience, I thought the red line would probably take the middle path, and the odds of it following the green line down were low.
Didn’t expect BTC to rebound for just one day after Aug 22, and then head straight for the “worst-case scenario”—as predicted: before Sep 7, the red line kept tracking down with the green line... bottoming out at MVRV = 1.93, which maps to a BTC price of $101,000.
Sure, we’re not at $101,000 yet, but that’s not really the point. What matters is, the voodoo indicator now says that in a few days, the blue and green lines will start moving up together. If the red line syncs up too, then the inflection point should land right around 9/7~9/9.
After the jobs data comes out on 9/5, US stocks are closed for the weekend on 9/6~9/7. The real market reaction to the data will show up Monday, meaning the night of 9/8 into the early hours of 9/9. That lines up exactly with the voodoo indicator. Coincidence or fate?
Also, this synchronized uptrend for the blue and green lines should hold until around 9/29, maybe as late as 10/30, staying above the yellow dashed line (MVRV: 2.42). In plain English: during this period, both blue and green lines will be higher than the current red line. Theoretically, the red line could keep grinding upwards until 10/30.
If the red line goes against the trend (down), that’ll be only the second time the voodoo indicator has failed since March. How will it end? Guess we’ll have to wait and see.
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This thread exists thanks to everyone constantly bugging me for an update. Honestly, I was just going to post one line:
The voodoo says a big move is coming...
But I figured that would raise even more questions, so here I am rambling again.
Sorry to those who just want the TL;DR. Didn’t mean to ruin your reading experience!
One last reminder: don’t ever use voodoo as your only signal. It really is mysterious as hell.
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‼️ My posts are for learning and sharing only, NOT investment advice ‼️
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