Secondary Cycle Trader
I'm extremely busy with my own business and I travel a lot, so I don't have that much time looking at the stock market. I just want to find an extra edge that will help me increase my rate of return during the course of the year.
The Secondary Cycle
Secondary Cycles fit neatly inside the Yearly cycles and it's something I would recommend for those who are too busy, or don't want to watch the markets on a regular basis.
The study of cycles is fascinating because cycles often repeat, and predicting tops and bottoms of cycles is an important tool if properly utilised. Some think that picking tops and bottoms are too unpredictable and that market behaviour derived from past price action acting the same can’t be consistently accurate or reliable, however, when using both the trend identification principles and model, you've increased your edge considerably.
Above is the S&P 500. We have our position trading plan in place based investing our money once it hits our trailing support level. We have our upper target of 6,254 in 2023, which is about 100% return from where you've picked up the lows in 2022 & 2023.
There might be other experienced traders that would like to hedge their positions, increase leverage, or even take short positions once the price reaches the highs.
The Secondary Cycle
Secondary Cycles fit neatly inside the Yearly Cycles and it's something I would recommend for those who are too busy, or don't want to watch the markets on a regular basis.
The study of cycles is fascinating because cycles often repeat, and predicting tops and bottoms of cycles is an important tool if properly utilised. Some think that picking tops and bottoms are too unpredictable and that market behaviour derived from past price action acting the same can’t be consistently accurate or reliable, however, when using both trend identification principles and model, these do become highly accurate. It's the passage of TIME, that defines the length of the trend and reversal of trends
For example, we can already see that in 2023, the yearly top of 6,254 won't be reached, and it will probably take another 12 months for the Index to reach those highs; the 2-timeframe wave pattern.
We also notice monthly closes below the 50% levels is when markets collapse 2018, 2020 ,2022 and the same applies on the upside.
It is often said that history is the best teacher. History teaches us that patterns will often repeat and that past price action influences future probable price action. The Trader’s instinct is to then seek out two important phenomena: - pattern recognition and Trend identification, In essence, the trader is trading probable future price action that’s determined by Time and then validated by Price.
· Apply the trend identification Model: - Primary and Secondary cycles.
· Identify support, resistance and likely trends.
· Identify the change of support & resistance with the use of Time.
· Forewarn & foretell the likely events in the future.
It's sounds overwhelming, but it's simple!
Above is the Bitcoin Chart showing the Secondary Cycles in Yellow, and it clearly maps out the trend within the Yearly Cycles.
It allows the trader to know when to add, how long to hold the position for, and for others they can either exit their position or even 'short' the cycles, as it changes from support to resistance and back into support, as seen at the start of 2023.
It is such a powerful tool because it demonstrates one of the main principles discussed the book, price rotates inward and then pushed outward from the 50% levels into the following timeframe.