(8-3) CYCLES

WEEKLY CYCLE

– day 1,2,3 have we made new lows/ highs ?

– If we are making new lows/highs do we have a peak formation that’s opposite to day 1 or do
we continue the move with the trend ?
– Day 3 are they trapping anybody blowing off with the move ?
– Day 4 which way are they headed or are the consolidating ?
– Day 5 is it a reversal day or is it trending and continuing the move off the low or high ?

DAILY CYCLE

ACCUMULATION
EXPANSION
DISTRIBUTION

– The day starts of as either and inducement or a liquidity build up/Asian session.
– Stop hunts to the low or stops hunts to the high during Frankfurt
– Then price will continue during London after stop hunt, so stop hung low then move up or
stop hung high then move up
– New York will either make a reversal or a continuation

MONTHLY CYCLE
– new month new cycle ( monthly highs monthly lows )
– Monthly average range ( opportunities can be the biggest at the beginning of a new month )
– Monthly cycles ( 1-2-3 months, monthly AR etc)
– HOM/LOM HOW/LOW HOD/LOD
– three day cycle can offer large opportunities ( M-F )
– Look for best trade set up ( Trend trade, reversal etc )

SAME SETUPS APPLY

– look for monthly high/ low to be broken
– Engulfments
– Pin hammers
– 3 pushes ( 3 weeks sometimes to end a move )
– Combinations can offer the best RR setups on a intra day trade (BTS)
 – The path of least resistance

LOGIC BEHIND MOVES

– trend trades may have a 1-2-3 stop hunt into late entry positions in the trend
– Reversals may trap Breakout traders chasing the move
– Three day setup creates the trading range at the beginning of the month ( inside or breaking
out )