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Buying Stocks, Futures, Forex During Volatility Market Cycles.

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Buying stocks, forex or futures during high volatility market cycles may lead to the opposite result of what you’re looking for. Stock market research indicates that the best time to buy stocks may be before a stock market trend, when you have rolling stocks, channeling stocks or other contraction price patterns.

So today we continue with our series on market cycles by covering expansion/contraction cycles.

As usual, the “retail” trader usually times these cycles perfectly wrong!

Learn about these market cycles and how to time them like a professional trader.

Although I use a stock market reference here (and the chart is one of the stock market) everything in the video can be applied to Forex, futures and commodities as well.

Enjoy the video and please post your comments/feedback below.

Stock Market Research – Calendar Cycles

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Today I continue my series on cycles. As I’ve done stock market research over the years, I’ve repeatedly come across the idea of market cycles that repeat around the same time of year. They’re often called seasonal or calendar cycles.

These cycles can be used in buying stocks and even rolling stocks on a long term basis. However they are probably most well documented in commodity markets, especially the agricultural commodities.

Stock market research has shown that these calendar cycles can be applied beyond commodities to any business that has a regular seasonality to it, whether it be retail, travel, financial, etc.

Like many things in stock market research, these market cycles aren’t as simple as buying or selling at the same time every year. They provide opportunities to look at the market in question, and the analyze it. But sometimes news may come out that a time of year that is normally strong for your market is going to be weaker than expected, and so it may actually turn into a shorting opportunity.

And just to make things even more challenging, sometimes normal calendar cycles don’t occur as they have for years and years before.

This should not disappoint or discourage you. As I am famous for teaching – no one indicator is worth much when it come to making money … and that includes cycles. It doesn’t mean they aren’t helpful. It simply means that you should consider them as only one part of the probability scenario in your total trading plan. And they can be a very important and powerful part of that plan.

In this video I share with you a couple of seasonal  cycles:

  • One of the most famous calendar cycles.
  • One that I’ve found to me the most reliable.

Enjoy the video and then post your comments below. I’m very interested in your responses.

Currency Chart Up/Down Market Cycles

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The response to the last post is that readers want to hear about ALL the different market cycles!

So today I start with the first of a series of blog posts on cycles. I’ll be demonstrating with a currency chart, the forex EUR/USD pair, but what I share also applies to futures and stocks.

We begin with the one that probably comes to most people’s minds – the up/down market cycles.

The currency chart in the following video will demonstrate the basics of this principle. I wish I had more time, but the videos are limited by the space on the servers so I have to keep them around 10 minutes.

The one thing I wanted to add is that to more precisely TIME the entry using cycles, it’s critical to use multiple time frames. I’ve never found any cycle indicator, used alone, to be of much value.

Like all of my trading strategies, whether trading Forex currency charts, stocks, futures or any other market, no ONE indicator is worth its salt. It’s when multiple energies align that we find probability scenarios worth putting our money at risk.

That said, enjoy the video …

Market Cycles Kept Secret From Losing Traders and Investors.

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A stock, Forex or futures chart only has 2 dimensions. Most traders and investors focus only only one: price. But along the bottom of every chart is another dimension: TIME. That axis is fully 50% of any chart’s equation and it measures market cycles.

Stock market cycles (as well as those of Forex, commodities, futures or any other market) are absolutely critical for those trading the markets because they provide the critical element of TIMING when to enter a trade.

A floor trader at the CME once told me that retailers (his word for amateur traders) are usually right, but at the wrong time.

W.D. Gann proposed that time was more important than price.

And yet as I talk to traders around the world, very few of them know anything about market cycles.

One of the most common laments I hear from amateur traders is that they took a position, quickly got stopped out, and then the market turned right around and went soaring in the direction of their original trade!

This happens because they don’t know how to TIME their trade.

When most people think of cycles, they think of up and down oscillations. And that is certainly one type of cycle. Even in a trend, the market moves up and down during its larger directional move.

However there are other types of cycles as well:

  • Contraction/expansion (cycles in volatility).
  • Order/chaos (cycles between high probability setups and low probability setups).
  • Fast/slow (cycles in how fast the market moves).
  • Coupling/uncoupling of sectors, industries and various market pairings.
  • Seasonal and calendar cycles that tend to occur around the same time of year.

… and there are probably many more.

Learning about these various types of cycles can give you a tremendous edge in trading because most traders don’t give them any attention. It can be your advantage that may turn you from an average day trader, swing trader or investor, into a profitable one.

The topic of cycles is a big one, so I decided to simply begin with this introductory article and then let you decide where we go from here.

Are you interested in learning more about these cycles? If so, put your requests (specifically which type of cycles you’d like to learn more about) in the comments section below and I’ll be happy to create blog posts/free videos in the future that cover those areas of most interest to you (majority wins!).