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MARKET TIME CYCLES KEY TO TRADING PROFITS

 A close examination of price action looking over years of price charts will reveal to you that there is an ebb and flow, much like the waves of the sea, in the patterns of price.

 
In fact, it has been determined that major cycles affecting the markets are the 100 year cycle, the 90, 60, 50, 30, 20, 10, 7, 5, 3 and 1 year cycles.
 
There is a harmonic relationship between these cycles. For instance, you have the 30, 60 and 90 year cycles that are clearly related by intervals (harmonics).
 
W. D. Gann, Bayer, Hurst and many others have put forward many examples demonstrating that price action is the result of a composite series of cycles operating on the markets at the same time.
 
The value of acknowledging the existence of these cycles and learning how to find them in price action has enormous value when it comes to market timing and trading profits.
 
In the most basic form of cycle analysis, one need only to study a price chart to find a series of tops or bottoms that tend to occur at some related time value. For example, you may find that tops and bottoms are forming around every 30-days in Lean Hogs, or that on the weekly chart there is a weekly top or bottom every 15-weeks.
 
While individual cycles do come in fixed-intervals such as 10, 15, 30, etc., because each are having varying degrees of influence on any given market at the same time, the resultant price pattern is anything but fixed in its interval of tops and bottoms, with occasional exception.
 

 


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Many who take a cursory approach to analysing charts for cycles look only for these fixed-intervals and, once having found one, attempts to predict the next top or bottom at such interval only to then discover it has disappeared. This has led many to consider cycle analysis as a worthless endeavor, if only they knew that more work needs to be done.
 
As a serious student of the markets, I have been making highly accurate market forecasts for over two decades. Many of my market predictions have been publicly announced on trading forums and most recently via newsletter and YouTube videos.
 
First hand I have been taking advantage of market cycles to time my trades for excellent profit opportunities with very limited risk. By knowing in advance when to expect a market top or bottom, it is not difficult to see how you can get in at the right time and not have to resort to using wide stop-loss orders. Stop-loss orders are placed much closer to entry price thereby reducing initial risk exposure.
 
While I provide a service to traders in producing a weekly report on upcoming cycle tops and bottoms expected for specific futures and Forex markets, this article is to help those of you who want to learn how to do all this on your own. So here is what I suggest.
 
The first thing that helped me to get to the point of proficiency in cycle analysis was to realize first that markets do not operate randomly but follow natural laws. What helped me move in this direction was to first learn about Fibonacci Ratios and the relationship between Fibonacci and the markets.
 
Moving on from there, I would highly recommend getting to know the works of W.D. Gann. Read available material on his methods, but focus solely on the CYCLES aspect and his comments on trend and leave the other stuff alone. You can easily get caught up in all kinds of different methods when dealing with Gann, but I suggest you stay focused on CYCLES.
 
Do a search on Bayer as he relates to CYCLES. Find material on his writing as well. This is a real eye-opener.
 
Last, but not least, learn the methods of J.M. Hurst. An engineer by trade, he has helped clarify many questions I had about the effects of cycles on market action and provides excellent methods of doing the analysis manually. It's a bit of work, but it is well worth it!
 
That is the roadmap towards becoming effective at analysing price charts and learning how to pinpoint future market tops and bottoms. Those who choose to put in the time and effort to learn this will find as I have many great rewards.
 

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