Cycle Trading

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October was the lowest point since the dollar’s 3 year cycle peak from this past July. Since last week broke below the October low, it has the potential of marking the three year low.

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If the dollar did print a three year low last week, then this would be the first daily cycle of a new three year cycle. The expectation would be to see this daily cycle break above the 200 day MA and form in a right translated manner. If this daily cycle rolls over by day 8, that would signal that this daily cycle is forming in a left translated manner. It would also signal that the tree year low has yet to be printed.

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Stocks broke out to a new all time high on Tuesday and then printed a bearish reversal. Wednesday saw stocks form a swing high. A break of the daily cycle trend line will signal that stocks have entered their daily cycle decline.