Forex market cycle trading

Forex Market Prediction Cycles with Divergence Indicators: Stochastic Oscillator 5, 3, 3 and Cycle Lines Time Frame: Analyst Navin Prithyani forexwatchers. Inupon my visit to Ahmedabad, India, I met an Astrologer who shared some insights on his views on the financial markets.

During our conversation he explained how the movement of planets in relative to the earth have impact on how life runs on a daily basis. He mentioned that the market works in cycles.

The factor of price does not have to follow this concept, but time does follow it. The first thing I do is pull up any forex chart and look for a divergence between price and Stochastic Oscillator.

Once the divergence is visible, I plot the Cycle Lines from point to point. This will draw a vertical line in future based on time that will display when we should exit our positions. Using this method you will usually be able to capture the entire strength of the cycle. If the market is in a downtrend, connect the top peaks. If the market is in a uptrend, connect the bottom valleys.

Should You Trade Market Cycle Systems? | DailyForex

In this uptrend example we can clearly see the divergence between price and our Stochastic Oscillator indicator on the bottom. As this formation is shown, we can enter long buy. In this downtrend example we can clearly see the divergence between price and our Stochastic Oscillator indicator on the bottom. As this formation is shown, we can enter short sell. Once you find the mid peak or valley, find out if the distance between point 1 to mid-point is larger or from mid-point to point 2.

Once you figure our which one is larger, we will now get ready to plot the Cycle Lines. If the distance between midpoint and point 2 is larger, I would plot my Cycle from midpoint all the way to one candle after point 2. Once your plot the Cycle, you will see the next area for exit based on time. Refer to example below. In the example above, since the distance between point 1 to midpoint was larger, I plotted free technical analysis software indian commodity market Cycle Lines from Point 1 all the way to 1 candle us dollar rates in indian rupees the midpoint.

Once I did that, I can clearly see what time I should exit my short sell trade that I initiated after point 2. In the Sell Trade example, we had a nice divergence that forex market cycle trading us a heads up that the market is going to be short.

We enter our trade for a Sell. But for how long?

We need to plot our cycles to answer that question. We measure the distance from the peaks to the midpoint and we see that the first peak to the midpoint has a larger distance. We plot our Cycle Lines from the first peak mbtrading day trading requirements the way to 1 candle before the mid point. Now we have a clear exit. We take our trade up until the next cycle.

At the close of the candle on the cycle, we exit. In the Buy Trade example, we had a nice divergence that gave us a heads up that the market is going to be long.

We enter our trade for a Buy. We measure the distance from the valleys to the midpoint and we see that the first valley to the midpoint has a larger distance.

We plot our Cycle Lines from the first valley all the way to 1 candle before the mid point. Awards at FXStreet " Most Read Analysis" " Top 5 Webinars" Awards at Udemy " Top Educator in Finance" " Highest Rated Training Course".

Your Privacy is protected. Identify the Divergence The Forex market cycle trading If the market is in a downtrend, connect the top peaks. Divergence is a great indication for a reversal of the immediate trend. Plotting the Cycle Lines The Exit Always Plot Cycle Lines on the larger distance. Refer to example below In the example above, since the distance between point 1 to midpoint was larger, I plotted my Cycle Lines from Point 1 all the way to 1 candle before the midpoint.

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Sell Trade In the Sell Trade example, we had a nice divergence that gave us a heads up that the market is going to be short. Buy Trade In the Buy Trade example, we had a nice divergence that gave us a heads up that the market is going to be long. Want to attend the next Live Webinar? Subscribe below to register for the next Webinar! RELATED POSTS Urban Towers Scalping Strategy 0 Comments The Core of Forex Trading… 0 Comments How Pros Are Using Pivot Points 0 Comments How to Trade Divergences… 0 Comments.

About The Author Navin Prithyani.

Forex Market Analysis – kysiqubonypun.web.fc2.com

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