Cycle Trading

The Miners have been in a daily uptrend.

The Miners closed above the upper daily cycle band back on December 20th. Closing above the upper daily cycle band ended the daily downtrend and began the daily uptrend. The uptrend has been characterized by highs above the upper daily cycle band and lows occurring above the lower daily cycle band.

We are staring to see some signals of a daily cycle low. The Miners delivered a trend line break as it declined into the day 27 low. Tuesday was day 27 for the daily Miner cycle, placing the Miners well within their timing band for a daily cycle low. However the Miners did not manage to turn the 10 day MA lower so not all of the criteria has been satisfied for daily cycle low. The Miners printed a big bullish reversal on Tuesday. So if a swing low forms off the day 27 low, there remains uncertainty if we should label it as a DCL.

This is where we can use our cycle band tool. Cycle bands tells us that Miners are clearly in a daily uptrend. So they will remain in their daily uptrend until the close below the lower daily cycle band. And the correct strategy is a daily uptrend is to buy the swing low. A break above 24.17 forms a swing low and will trigger a cycle band uptrend buy signal.