Cycle Trading: Preponderance of Evidence
|Monday we were looking for evidence that day 23 did host a daily cycle low.
Normally 23 days is too early to expect a daily cycle low.
Part of our rationale to consider day 23 as the DCL included:
-
Swing Low off of support at the 200 day MA
-
Closed above the 10 day MA
-
Closed above the declining trend line.
-
Delivered a bullish TSI Zero Line Crossover
Since then stocks managed to turn the 10 day MA higher. Stocks have also broke above the 50 day MA to close above the upper daily cycle band. Closing above the upper daily cycle band ends the daily downtrend and begins a new daily uptrend. It also convinces me that day 23 hosted an early DCL. And now that stocks have begun a new daily uptrend they should remain in its uptrend unless it closes below the lower daily cycle band.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.