Gabrielle W

November 8, 2019

Identifying the Four Market Cycles

 

Always look for the forest through the trees

This week I am presenting everyone with a guide both technical and visual to determine the larger trend. Hindsight is 20/20 but in the moment but we can easily miss the overall trend happening now or a major transition about to take place.

Pro tip: Analyse past historical market cycles. Where are the areas that could have been missed by a trader? Where was peak fear and euphoria? Where is the market today?

Accumulation

Range after a long period of decline(generally 6 months)

Flattening 200 MA on daily

Long period of consolidation

Advancing

Breakout from accumulation phase

Forms an uptrend

Price consistently holding above 200 MA

 

Distribution

Range after an advance

Long period of consolidation

200 Daily MA flattening

 

 

Decline

Price breaks below the 200 daily MA and consistently stays below

The ideal zone to become a long term investor

 

 

Need help with identifying market cycles? Click here

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