Trading Insights

Trading Insights

Trading Flux market timing cycles with Forex

Trading Insights
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One of the things I hear a lot in our webinars, relates to news events.

Most Forex traders want to know how this or that reports affects cycles that are for all intents and purposes, known about and locked in a week before they potentially play out. They don't have futures and forex trading software that can handle that, or look for that. Market timing cycles are a mystery to most people.

Take a look at this AUDUSD chart from today (5 min).

 

I couldn't tell you what the news was today. I honestly have no idea - I've been busy writing these posts for our blog.

But what I found interesting to the technical analysis and trading of this forex pair is simply this - the majority of the cycle times pushed the market in the direction that we were anticipating the market to go.

What's even more interesting to me on this chart, is how the AUDUSD double tops at 8:30 this morning, near a major fractal pivot line, at the time we were expecting a sharp down move.

We then move into the 10:00 reversal ot the long side, with support beneath us.

Then the AUDUSD travels up to the next large FPC resistance area at 1.0710, lo and behold, a Flux turning time - double tops, and drops back down to structural support.

 

The long time cycle kicks in....the market drifts down to the thickest FPC line on the screen for the AUDUSD today...1.0693. And what does it do there?

Up.

Think about this next time you're trading the Forex.

The times that the market turns - and the prices that the Forex pairs will turn at, may be carved in stone - determined - before that market ever opened.

Waiting for the TIME cycle (dots) to intersect with the PRICE clusters (Fractal) results in a completely uncorrelated set of indicators, and a higher probability of the trade moving as it has in the past at that time and price.

WD Gann spoke about it in his writings 100 years ago - and the same market cycles are playing out real time today - uncovered by the power of our personal trading computers.

I am amazed that people who trade forex pairs, or the futures markets, don't use predictive indicators in their trading software arsenal. Most people are content to use indicators that lag in their NinjaTrader or Tradestation suite of tools. Predictive indicators, as evidenced above, not only provide a statistical trading edge - but an important emotional one as well.

It was good news in the AUDUSD forex pair today. We'll see how it plays out moving forward...