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Technical Analysis

Identifying the Four Market Cycles

By November 8, 2019 April 28th, 2020 No Comments

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.

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