Stock market cycles are absolutely critical to understand because they tell you when to enter and when to exit the market.
When to get in and when to get out. All the other complicated theories, Forex indicators, E-mini price patterns aside, it really all just comes down to those to things:. What are YOUR thoughts about stock market cycles?
Welcome to this video on Stock Market cycles. Barry Burns here with Top Dog Trading. Today we are going to make reference to a quote from W. He talked about markets being about the confluence of time and price. So these are for indicators, these are for support resistance, these are for candle stick patterns, price patterns. The problem is that not as many people talk about the time axis.
And yet while there definitely is information out there about trading cycles, it tends to be very complex, very sophisticated and pretty much ignored by the majority of traders. So what happens when you ignore the time axis? They look at this as an uptrend here and say that looks pretty good. And so you could draw that across as a horizontal line and say we have resistance. Resistance we got above it and now we are coming down to support to bounce of off that. Okay so there is a reasonableness to taking that position, and so then you go long there and market goes up and then oh my gosh comes back down and it takes out this low.
That was not the right time to enter this market. Because they got in at this time instead of this time. And that makes a big difference.
Day traders and swing traders of stocks, Forex and futures end up getting stopped out of the market and that leads to a psychological challenge where you get kind of skittish. The market goes forward, then it finally goes up. Okay, so the right time to enter this market was this time right here. So one of the ways that people use to measure stock market cycles from the most, it would seem like obvious ways, and some trading platforms actually have this type of tool as a cycle tool, is to look in history.
And ask yourself what would have been the cycle lengths in the past. We could go from this low to this low, by the way in traditional cycle analysis, cycles are always measured from low to low. This cycle low to that cycle low is 22 bars.
Then if we go from that cycle low to that cycle low, its 26 bars. Pretty close, pretty close. And then if we go to the next cycle low, now we are at 28 bars. So we have 28, a 26, a So the difference between 22 and 26 and 28 and that seems like a lot, but between 22 and 26, is a fairly decent percentage.
Could be kind of hard to time that. And so that would be very deceiving. And the reason that this happens is that cycles expand and contract. They are not consistent.
The markets are not that neat and tidy, they are very challenging. They are not like a tamed purse puppy. What I have found is that the best way to measure cycles, actually you have to do it in real time.
Past history, really in my opinion has nothing to do with what cycles are going to come up in the future. But basically we are in real time, looking for momentum shifts. So we are looking for strength to go up, strength, strength, strength, then we are looking for a weakness. For the momentum to shift here. And momentum is velocity times mass.
And once, so we get strength, as soon as we get weakness, we look for a stock market cycles high there. And then the same thing, when it comes down we look for strength coming down until it gets weak and then we look for shift to go back up. We use cycle analysis with other tools. And this is just one way that cycles are shown. As opposed to the market getting weaker, it actually shows exhaustion.
Those are the ones that are tradeable. We are not trying to be right and find every cycle high and cycle low. So you do this with the other energies in the market. So price is much easier.
Trading Divergences In Forex
Price is simply using the support resistance levels that are the most common things. So floor trader pivots, Fibonacci levels. For long term trading 52 week highs and lows. And very important are major major previous swing highs and lows.
So those would be the primary support and resistance levels. HOW DO YOU TIME YOUR ENTRIES AND EXITS? Just fill out the yellow form at the top of the sidebar o n the right. Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here: Forex trading for beginners provides a steep learning curve. This video on the best support and resistance levels will help speed up your Forex education to get you on the road to profits faster.
Welcome to the video on forex trading for beginners and this is Barry Burns with Top Dog Trading. But I still rely on it heavily to this day, 49 years later.
Well actually my dad started teaching me and I was eight years old so I think I took that class like 20 years later but still a long time ago, long long time ago.
To buy off of it, to sell off of it, take profits into it, etc. And so has a self-fulfilling prophecy. In the markets, in the auction place, yeah people get excited about something or they are not interested, and that effects the price. Market comes down, retest that once. Comes back, retest twice. Comes back, retest for the 3 rd time. Not going, so probably not going to go and so it goes down. Now where does it go? It goes to the very next support level as defined by a major low.
It came from there but actually goes back before that. It actually goes all the way back to here and to here. Again you see 1, 2, you can see these levels. The market came back to it again. Now this is what will often happen.
So the market now, the other point of the Top Dog principle of 3 is that it works best when they are close together. Why, because that stays in the memory of traders. People are looking at it and saying, within a short period of time, relatively short period of time, where you can see it on the charts.
And you see it. This is and we have to go all the way back here to, well going back over a year. So we are going back about a year. Will some people see it? Absolutely they will, and for that reason people did respond to it. So the market came down, 1, 2, 3.
Tried it three times and then made a big move up. Because people gave up on shorting the market here. They thought okay well the market thinks its worth more than that.
Market, meaning the market participants globally. This is one of the key principles for Forex trading for beginners to understand. So yeah, it went up quite a bit, but then, boom. And this time it just slid right through. I just call that a bar of hesitation.
Remember, even the best support and resistance levels are broken all the time. If they did, well the market would never be able to go anywhere right.
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So of course, support resistance is broken. But this, these are areas where we look to potentially buy, potentially sell, potentially take profits into. And you need to obviously use other things along with support resistance. Just send me an email at Barry TopDogTrading. Enter your opinion in the COMMENTS section at the bottom of this page.
Quite an interesting thing here which is not only important for the presidential election, but also some good trading lessons. One of the most interesting conversations. Election was on November 8 th. And as you can see here, the market rallied pretty dramatically. Get a big big bullish bar here after coming down a little ways from there to there, kind of a neutral bar here. That is a bottoming candle stick bar but still point is, before the election, the day before election, now if you are listening to the news, people are calling this the Clinton Rally.
The Clinton Rally, because all the polls, or almost all the polls, the vast majority opinion was that Hillary Clinton was going to win the election. And they, market participants, like to get in board or on board, before something happens. So People were buying the rumor, that Clinton was going to win, it was a sure thing, done deal.
And that the market must like Secretary Clinton. That it would rally so dramatically. I mean just compare this bar with the bars before. That is a very very bullish bar. This is 24 hour binary option trading vegas day of the election.
So a little less enthusiasm. You know definitely still market moved up, made a higher high and a higher low. It closed above the open. Where did it go? It stopped at that red line.
Now is that some magical numerological line? The 50 period simple moving average is one of the most commonly used moving averages, and so if you go back over here in time, you can see as well that the market held the 50 period simple moving average there as well. Support resistance works for one reason, and the market logic as I call it, that support resistance works is because a lot of market participants see it, and the make money in dc universe people that see it react to it.
Either buying or selling or profit taking. You want to use something that everybody sees because it has a self-fulfilling prophecy to it. We see this all the time with 50 period simple moving average. But a lot of times, boring works. I learned what he and his friends were doing, and it was frankly brain dead simple.
I came back humbled because they were making a lot more money than I was. I just thought wow. Wait a minute, but Donald Trump won. And nobody was quite sure. Well by the time, the market closed on Tuesday, the day of the election, the results were not all in yet. The market went up, so now they called it, guess what they were calling it on the news the next day. They were calling it the Trump Rally! They are calling it the Icwr forex trading Rally forecasts interest rates binary options the news.
So we had a Hillary Rally here, and we had a Trump Rally here. And so the question is, did it really matter who won the election for the stock market? Either way, the market went up. It was just a rally. Quotation stock market market goes up, up, up. Actually need to rescale here now a little bit. And see where we are today. Market get more narrow range, volumes taper down a bit, and why?
Now horizontal resistance level just means a previous high. A previous high in the market. So why does this low actually come in? Well sometimes technical analysis can be a very amazing thing.
So there it is. The simple moving average. So those are two most commonly used moving averages, especially on daily charts, weekly charts and monthly charts that traders look at. And guess what, it works. But why does it work? No magic to it. So as price comes into those levels people are buying, selling and taking profits. Those who were focused on the news may have missed out on this market move. So I encourage you to have those two moving averages on your charts as part of your stock market techniques.
I also include personally the simple moving average and I also use the 15 exponential moving average. But these are the 2 primary ones that provide, very reliable support resistance for the short term capital gains tax rate 2016-14 to bounce off of. Sometimes just staying with simplicity is actually the best thing, and it works.
This is why these can work for even those who think they are using stock market for dummies techniques. Those interested in stock market techniques and stock market for dummies also showed in interest in this video: Day trading for beginners can seem like a tall mountain to climb. Trading can be a very rewarding profession, but the newbie must begin by understanding just that: Day trading is a profession and takes time and serious study to master.
It can used for trading most any forex divergence trading that has professional traders participating. Welcome to this video on day trading for beginners.
First, notice that at the beginning of the day, we have the gap open. Hyips robot forex E-minis go up a for about15, 20 minutes or so. To avoid any confusion, this is not something you can find in your list of indicators.
It is an index, so it has a symbol. So the same thing here. And issues mean basically equities or stocks. So how many are going up versus how many are going down at that time? And it is something that I use a couple of different ways. First, let me show you the first way that I use it. And that is like this.
Whereas the E-mini does. This is contradicting the advance decline index and therefore this tends to be more correct than the individual stock or futures contract that binary options removing dengue are trading. So looking forex divergence trading take this short.
Now let me say one other thing here before we get carried away with this. This is not something that you use alone. Nothing use in isolation. It would be part of your trading methodology.
One part of your trading methodology.
How To Trade A Divergence - A Step By Step Trading Guide
You could call this a divergence. But the advance decline line goes up here but look again we have a higher high on the E-minis. Whereas we just have an equal high, essentially the advanced decline.
And so therefore again that showing that this move up is moving up on weakness. And identify other indications, other reasons to assure it, I may actually even go even short, and be able to get in early.
And I put it on the E-minis. We have 20 period simple moving average on both of them. The idea is basically to trade in the direction of the 20 period simple moving average on the advanced decline index. So here we are below, price actions below the 20 period simple moving average, and price is moving down. So here if you look at this section, and the E-minis, price gets below the 20 period simple moving average.
But not so on the advanced decline index, it stays above it. Relative to the moving average, it stays above it. And we also are looking at the angle. So we are able to stay into this all the way to right here, across or below it.
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All the other complicated theories, Forex indicators, E-mini price patterns aside, it really all just comes down to those to things: When do I buy? When do I sell? Forex Trading For Beginners: Forex trading for beginners. Stock Market Techniques That Even Work For Dummies By.
Last year that cycle was combined with 2 other important factors: Enjoy the video and please leave your comments below. MY FREE GIFT TO YOU. TOP DOG TRADING COURSES FREE TRADING VIDEOS STUDENT RESULTS TOP DOG AFFILIATE PROGRAM.