How to use trading cycles in your own trading

July 27, 2009 · By Adam · Filed Under Trading Tips & Techniques 

Everything in nature moves in cycles. . . the cycles of the seasons … night and day… tides… phases of the moon. Each year animals hibernate… geese migrate… salmon swim upstream to spawn… and every seven years lemmings run into the ocean.

While nature’s cycles are very visible, there are many cycles in the futures markets that are not quite as obvious. Often the reason some cycles are not easily seen is because the interaction of many large and small cycles makes individual cycles harder to see.

Cycles are the tendency for events to repeat themselves at more or less uniform intervals. One of the easiest cycles to see and understand is the seasonal cycle. Agricultural commodities have a repetitive annual price pattern called the seasonal price cycle. More than 70 of the time, the lowest cash prices of the year for corn, cotton and soybeans occur during the fall harvest period. Due to increased marketings, cattle and hogs also have price weakness during the fall. Wheat and oats tend to make seasonal lows during their summer harvest. Seasonal price trends are a reflection of regular annual changes in supply and demand factors caused by weather, production and demand.

read more here

SocialTwist Tell-a-Friend

Comments

RSS feed | Trackback URI

12 Comments »

Comment by REKI Subscribed to comments via email
2009-07-27 11:09:40

Just want to know why the offer is only for the U S resident only. I have tried many time to assesse most of the offer but to no successe.

Comment by lindsay
2009-07-27 16:53:12

Reki,

Please clarify what offer you are referring to. I see that you commented on the post about Cycles, but I do not see an offer attached to that post. I’ll be happy to help you, please just reply to this comment and we will figure out what offer you are talking about and how we an get that to you.

Best,

Lindsay Thompson
Director of New Business Development
INO.com & MarketClub

 
 
Comment by Debbie
2009-07-27 12:50:51

So how can the MarketClub software be used to take advantage of cycles.

Comment by Adam
2009-07-28 12:49:06

Debbie,

The trade triangle technology that MarketClub uses can and will catch market cycles. What we aim to do is catch the big cycles, that’s where the big money is made.

One of the key things with cycles is that you have cycles with in cycles, a it’s a fascinating thing to watch. What makes it an inexact science is sometimes cycles stretch and contract so it’s impossible to say that on this day you’re going to see a top or bottom in the market.

I hope this helps. All the best.
Adam

 
 
Comment by Duane Byron Carlson Subscribed to comments via email
2009-07-27 13:08:21

Consider a presentation on powerpoint and recorded on a disc so one could be beter prepared to absorb more detail from your next presentation. I like real world experiences from those of us who have been beaten up on.

There ones like us who are interested but would like to shorten the learning curve so we can develop confidence some what earlier.

In regards to decision making consider classes or news letters for specific people/clients to observe you make mistakes and learn how to NOT DO it again. My opinion is that one gains much more knowledge by studying errors and how to avoid future mistakes.

Cheers,
Duane Byron Carlson

 
Comment by Duane Byron Carlson Subscribed to comments via email
2009-07-27 13:11:27

What can you tell us about Market Research and it application to trading?

Comment by Adam
2009-07-28 12:44:22

Duane,

I’m not sure I understand your question.

Adam

 
 
Comment by Dave Subscribed to comments via email
2009-07-27 13:55:58

Adam,

I’ve been hearing whispers of market cycles for the past year or two but no one is really that clear on how they use them for their everyday trading. How prominent do market cycles factor into your trading style and how often do you use them %age wise to make trading decisions?

Thanks,

DaveDM

Comment by Adam
2009-07-28 12:40:57

Dave,

There are definite cycles in the market. These can be intraday cycles that last for 30 minutes or they can be on the weekly and monthly charts and they can last for many months in some cases.

I like to use our trade triangle technology as I find that is a very good way to to time cycles using our various time modes.

There is a gentleman whose name is JM Hurst who published a book in the 70s I believe it is called the Magic of stock market cycles. Not sure if that is the correct title but it was a very interesting book covering the phenomenon of market cycles.

I hope this helps.
All the best,
Adam

 
 
Comment by Pierce P Cassidy
2009-07-27 19:58:56

The information at the link “read more here” was very interesting.

I think a lot of people will miss out on this because it was not introduced/set up adequately.

Also important was that this was from an external source who rightfully made a disclaimer at the end on the discussion.

This is an interesting topic and worthy of future discussions.

Thanks for that!

 
Comment by REKI Subscribed to comments via email
2009-07-29 06:38:43

Hello dear, just to say thank you for repplying my mail.
Many time i have tried to assess some of news or blogs, at the end i can’t do it cos its only for US resident only.
But now i think my request has been meet and i want to read more about the market cycle and would like to get more information about it.

Regards
Robert

 
Comment by Vince Subscribed to comments via email
2009-07-30 02:52:58

Please keep me posted only on the “Cycle Subjects” very intresting, I suppose winning numbers in the lottery eventually create a cycle formation ?

Vince

 
Name (required)
E-mail (required - never shown publicly)
URI
Subscribe to comments via email
Your Comment (smaller size | larger size)
You may use <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> in your comment.

Trackback responses to this post