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Cycle Trading

Stocks At Risk Of Crossing The Other Line

Stocks printed a bearish reversal on Tuesday.

Tuesday’s bearish reversal eases the parameters for forming a daily swing high. And with stocks sitting on top of the daily cycle trend line, normally a close below the daily cycle trend line would send stocks into their daily cycle decline.

But there is a lot going on around price.

Either the 10 day MA or the 50 day MA could act as support to send stocks higher. But with stocks nearing its timing band for a daily cycle low, we will use a close below the 50 day MA as our signal of the daily cycle decline.

4 responses to “Stocks At Risk Of Crossing The Other Line”

  1. daniele Avatar
    daniele

    Hi, but daily cycle length is about 35-45 days, so were a little early aren’t we?! I mean 25 is really too early in order to have evidence of a cycle decline.Thanks

    Reply
    1. likesmoneystudies Avatar
      likesmoneystudies

      A daily cycle decline could last 7 – 10 days.
      But first stocks would need to close below the 50 day MA.
      A bounce here off of the 50 DMA could send stocks to test the 200 MA.

      Reply
      1. daniele Avatar
        daniele

        Thanks, do you think that SM could tag 200ma in THIS daily cycle?Thanks again.

  2. likesmoneystudies Avatar
    likesmoneystudies

    Yes

    Reply

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