SOFR is here. How will it affect your set-up. (Fundamental affecting technical)

[FinoptUSA- MBA]

SOFR (Secured Overnight Financing Rate). The Secured Overnight Financing Rate (SOFR) was selected as the benchmark reference for interest rates,

Learn about SOFR and transaction times. This may affect the charts with transaction clearing, which may bring higher volume into the markets. Think about potential volume spikes and how this will effect your set-ups. Particularly, as ICT states with Central Bank algorithms.

 

[LJ_Kon]

Could you explain the role of SOFR as a benchmark interest rate indicator and how it affects financial markets?

 

[FinoptUSA- MBA]

I would refer you to SOFR on YouTube for the answer to that one. I am more focused on how SOFR will increase volatility in the market with transaction clearing and how it may affect set-ups on the chart. Will we see more volume spikes at certain time periods? ICT always talks about time and price. Here is a link to a factsheet by the New York Fed on the SOFR (link).

Hope this helps