The Market Cycle (excerpt from TRADING PLAN)

MARKET CYCLE - Trend Phases

MARKET CYCLE - Top-Down Approach


MARKET CYCLE - Trend Reversals

MARKET CYCLE - Trend Retracments

LONG Entry - BULL Trend Reversal

Long Trend Reversal Setup and Entry

1. Price Action Down Trend (Lower Highs / Lower Lows)
2. EMA's pointing down confirms Down Trend
3. Parabolic SAR Above Price Action confirms Down Trend
4. RSI Down Trend (Lower Peaks / Lower Valleys)
5. Trend Price Action Rhythm - typically 3 to 5 Rotations
6. Down Trend Chart Pattern
6a. Typically an Inverted Head & Shoulders
6b. A BULL Wedge (Falling Wedge) may form
7. Identify Resistance and Support in Price and RSI
7a. Price Resistance (BULL Close to BULL Close Swing Highs)
7b. RSI Resistance (Peak to Peak)
7c. Price Support (BEAR Close to BEAR Close Swing Lows)
7d. RSI Support (Valley to Valley)
8. Price and RSI should both be making Lower Highs/Lows otherwise they are not in sync - Heads Up!
8a. Price/RSI Bull Divergence (Triple Divergence)
8b. Price/RSI Bull Chart Pattern (i.e. H&S Bottom and/or W)
9. Look for BULL Divergence in the RSI with RSI compressing (Lower Highs and Higher Lows) with Price at a reasonable identifiable Support
10. LONG ENTRY on break and close above Price and RSI Down Trend Resistance

RSI Paradigm Shift Explained

Trade Setup Examples - 377 Tick Chart (Shorter Time Frame)

Trade Setup Examples

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Trade Setup Examples - 987 Tick Chart (Longer Time Frame)

Trade Setup Examples - 377 Tick Chart (Shorter Time Frame)