{"id":18809,"date":"2023-08-16T12:36:37","date_gmt":"2023-08-16T20:36:37","guid":{"rendered":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/?p=18809"},"modified":"2023-08-16T12:36:37","modified_gmt":"2023-08-16T20:36:37","slug":"cycle-detrending-can-you-use-cycles-to-fortify-your-trading-acumen","status":"publish","type":"post","link":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/cycle-detrending-can-you-use-cycles-to-fortify-your-trading-acumen\/","title":{"rendered":"Cycle Detrending: Can you use Cycles to fortify your trading acumen?"},"content":{"rendered":"
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Cycle Detrending: Can you use Cycles\u00a0to fortify your trading acumen?<\/h3>\n

by John Thorpe, Senior Broker<\/p>\n

I have accumulated a small library of important works in the study of futures trading over the years so instead of writing about the week ahead as I normally do on Mondays, I thought I would change pace ( I was enjoying a long weekend out of town )\u00a0so today, based on the work of Walt Bressert and The Foundation for the study of Cycles (Cycles.org) ,Jake Bernstein and others, I thought it would be important to briefly discuss another layer of technical analysis we all could use when trading becomes too myopic.\u00a0The study of Cycles, simply put Cycle study is dedicated to the study of recurring patterns in the economy, markets, natural sciences and the Arts.\u00a0\u00a0We are not looking to trade the big bottoms and tops that occur as the trend reverses, but the bottoms and tops of the shorter-term cycles occurring in the direction of TREND. One tool to identify the cycles within a trend is called “Centered Detrending” With “CD” you can visibly observe cycle bottoms and tops. Because this takes the mystery out of cycles you can look back over a considerable amount of time(History) and see the consistency and tradability of cycles.\u00a0Most trading cycles in the futures markets tend to cluster between 18 and 22 bars. What we want to do is CD the chart and calculate a moving average the same length as the potential trading cycle. But instead of plotting the\u00a0Moving Avg. (MA) from the last day it should be centered in the middle of the cycle; for instance if it is a 20 day MA, move it back 10 days from the most recent close.\u00a0this will show you a linear representation of the cycles relative to price movement.<\/p>\n

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You are half way home now, since this will only show historical cycles it can’t be used for real-time trading. You now will need an Oscillator to overlay. To use an oscillator to identify cycle tops and bottoms look for three characteristics: (there are a number of oscillators on your trading platform, play around with a few)<\/p>\n

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  1. The oscillator turns when prices turn<\/li>\n
  2. The oscillator does not \u201cwiggle\u201d much at cycle tops and bottoms<\/li>\n
  3. The oscillator has amplitude moves that take it to the extremes of an allowable range as the cycles bottom and top..\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0I hope this gives you a different perspective to learn best how to trade a trend.\u00a0My compliments to the decades of analysis\u00a0put out there by Bressert, Bernstein , Edward Dewey Chief Economist for the Hoover admins Dept. of Commerce.<\/li>\n<\/ol>\n<\/div>\n
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    Plan your trade and trade your plan.<\/a><\/div>\n
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    Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.\u00a0 You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time when it comes to Futures Trading.<\/p>\n

    Futures Trading Levels<\/strong><\/h3>\n

    08-17-2023<\/p>\n

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    Improve Your Trading Skills<\/h2>\n
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    \n<\/a>Economic Reports, Source:\u00a0<\/strong><\/h3>\n

    Forexfactory.com<\/a><\/p>\n

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    This is not a solicitation of any order to buy or sell, but a current market view provided by\u00a0Cannon Trading Inc<\/a>. Any statement of facts\u00a0here in\u00a0contained are derived from sources believed to be\u00a0reliable,\u00a0but are not guaranteed as to\u00a0accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own\u00a0judgement\u00a0in trading.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Get Real Time updates and more on our private FB group! https:\/\/business.facebook.com\/groups\/1105191589938254\/ Cycle Detrending: Can you use Cycles\u00a0to fortify your trading acumen? by John Thorpe, Senior Broker I have accumulated a small library of important works in the study of futures trading over the years so instead of writing about the week ahead as I […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[67,1434,76,230,30,234],"tags":[],"class_list":["post-18809","post","type-post","status-publish","format-standard","hentry","category-future-trading-news","category-charts-indicators","category-commodity-trading-2","category-day-trading-2","category-futures-broker-2","category-trading-guide"],"_links":{"self":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/18809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/comments?post=18809"}],"version-history":[{"count":1,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/18809\/revisions"}],"predecessor-version":[{"id":18810,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/posts\/18809\/revisions\/18810"}],"wp:attachment":[{"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/media?parent=18809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/categories?post=18809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cannontrading.com\/tools\/support-resistance-levels\/wp-json\/wp\/v2\/tags?post=18809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}