Markets are composed of three separate and distinct trends, the Primary Trend, which is the long term trend and lasts several years, the Intermediate Trend, which lasts from weeks to months and the Daily Trend, which is the short term trend. All these three trends are active in the market and can move in opposing directions. The Primary Trend concerns Investors and the Intermediate Trend concerns Speculators. Therefore it is possible to make money following the primary trend, but also to use the Intermediate and Short term trends that run contrary to the primary trend to optimize profits.
In comparison with all the other techniques, Cycles enable superior returns. Cycles’ technique is the only one that can accurately time major bottoms and thus gives an important edge for the trader. Here are some examples of Cycles’ Lows in different assets: Gold, SPX (US Index), Dollar. You can notice that Gold follows an 8 Year Cycle composed of a 3 and a 5 Year Cycles, SPX a 4 Year Cycle and the Dollar a 3 Year Cycle.
Cycles also bring superior returns in the Forex Market. In today’s crisis situation more and more people try to earn money in the Forex Market which is the largest market to trade but also the most difficult. Many Forex Traders that I met lost money 90% of the time. The main reason is firstly trading with a very Short Term Trend that is full of whipsaws and false breakouts and secondly their mind is full of emotions because of the high leverage effect. It is important to know that large profits in the Currencies Sector come from the Intermediate Term Trend. Cycles’ technique help the Forex Trader to develop a plan to catch the Intermediate Trend and avoid getting whipsawed. Watching patiently when all the factors come into your favor is key for great performance in this sector. Here are some examples of Forex Trades with Cycles’ Technique: EUR/JPY and EUR/AUD.
Cycles add the element of time in trading, overbalancing in price and time is very important for a change in trend. When time overbalances a change in trend, it is much more important than a percentage of prices. Including the element of time make Cycles a very easy and powerful tool to make consistently money and be successful in the financial market.
Cycles can accurately identify a change of trend very early and catch Intermediate Term trend and Long Term market movements. Cycles also enable to time exactly buys and sells signals within the short term movement. The Cycles’ method is quite simple, it is extremely consistent and very accurate. Knowing the Long Term and the Intermediate Term trends is the minimum requirement to be successful in speculation and investment. Without knowing the trend, the traders cannot hold corrections and will trade in and out of markets arbitrarily, blowing up their accounts. Cycles’ technique is not only a way to identify a change of trend and turning points, but also to evaluate accurately the time in the trend. As a speculator, the most profitable trade is using the Daily Cycle, in order to catch 80 % of the Intermediate trend in either direction. Daily Cycles can time precisely the Short Term trend and detect any signs that the Intermediate Term trend is changing. Cycles avoid confusing Primary movements with Secondary and Minor reactions.
Cycles’ technique apply to all markets (indexes, commodities, currencies, bonds, rates etc.) and to all participants (traders, speculators or investors). It focuses trading activities in the Short, Intermediate and Long Term trend and can identify the direction of the trend in all assets at any period of time. This is crucial information in order to earn money in trading.
Cycles help traders to avoid decisions based on their emotions. Psychology that drives market price movements runs in Cycles. Most of the retail traders don’t have the emotional control necessary to succeed in trading. Moreover, when they are heavily leveraged, they cannot take over their emotions and trade the plan which leads to making mistakes and losing money. Some traders can’t take responsibility for their own mistakes, blaming their bad luck or even manipulation. Trading can be an enormous psychological and emotional strain, so being able to avoid paying the price of physical exhaustion requires an exceptional level of integrity in thought, emotions and actions. Other people, although recognizing their mistakes, keep doing the same mistakes over and over, without ever learning from them. Everybody should wait for the market to show them the way and wait for price confirmation, but emotions make the traders lose their discipline. Human action translates into Cycles, which are recurrent throughout the history of market movements. Following Cycles is a true understanding of trends and avoids decisions based on emotions.
Cycles’ theory is in accordance with a set of rules and principles – it can define entry and exit points that are independent of the thinking process. Emotions and reason seem to be always in conflict. Cycles’ practice will keep the mind free and help to easily overcome the emotions, to accept and understand them and to be in control. Following the rules avoids conflicting emotions, values and beliefs. Defining rules and, most importantly, following them, is the key of success in trading. The trader has to establish inviolable rules that stop him from rationalizing himself into losses.
Many techniques may be used to analyze the market, but they are often quite complicated to use and not very accurate for successful results. Cycles’ technique is the only one that adds the element of time and enables to catch a change of trend very early. It applies for all participants and all types of markets and also helps traders to avoid decisions based on emotions. Most importantly, using Cycles enables superior returns for the trader, making them the most powerful technique of trading.