For more than 20 years Cycle Trends has been used by thousands of investors and traders in South Africa ,the UK and Australia to predict the future trends of the financial markets.
These tried and tested cycle indicators are now available to you in the Cycle Trends Plus Add-on for MetaStock.
The Theory Behind Cycle Trends Plus:Financial markets move in cycles over time. The analysis of these market cycles can predict the future trend of market instruments. Cycle Trends Plus, using complex mathematical formulas, is able to isolate the dominant cycles in financial instruments that are repeating themselves. Because these cycles have consistently repeated themselves in the past, the theory is that they will continue to do so into the future. These dominant cycles are then fused into one regular cycle by the program and then projected into the future.
It is interesting to note that the Rothschild bankers were successfully using cycles to trade the markets in the 1800s.
Using these cycles you can see the future trend of the instrument being analyzed as well as the peaks and lows.
The following are the three indicators used by Cycle Trends Plus:
- Trig Cycles:the main cycle indicator is derived from Trigonometric regression analysis. This projects the future trend of the instrument being analyzed.
- Trendic:the second cycle indicator, derived from Fourier analysis, isolates the immediate trend.
- TrueOBOS:also derived from cycles is an overbought/oversold indicator.
Cycle Trends Plus provides combinations of these indicators in five Templates. Depending on the stage that a security is in you can decide which template to use.
For example the instrument or the market can be moving to the top of a phase making new highs or plunging to new lows or just range trading and not establishing a definite trend. You can decide on the template to be used to match that phase of the market. These different templates have a function in the various phases for accurate cycle analysis, predicting the future movement of stocks, shares, options, currencies, etc.
The Cycle Trends Plus templates include five ready-made systems. All five systems can be used with the following MetaStock PowerTools – the Expert Advisor and the Explorer.
These systems are:
- Classic – the classic Cycle Trends system using the Cycle-Trig indicator, the TrueOBOS indicator, and a Trendic indicator with a period or “speed” of 36. All these indicators need to confirm each other for a positive (“buy”) or negative (“sell”) signal. The Classic Template is useful for a positive or negative signal at the top or bottom of markets.
- CycleOBOS – a system only using the Cycle-Trig and the TrueOBOS indicator. Both indicators need to confirm each other for a positive (“buy”) or negative (“sell”) signal. Like the Classic Template CycleObos is useful at the top or bottom of markets.
- CycleTrendics – a system using the Cycle-Trig and the Trendic indicator with two different periods or “speeds” of 55 and 36. All these indicators need to confirm each other for a positive (“buy”) or negative (“sell”) signal. Cycle Trendics is a favorite indicator giving reliable signals when a positive or negative trend is about to be established.
- Trendics – a system using the Trendic indicator with three different periods or “speeds” of 55, 36, and 21. All three “speeds” need to confirm each other for a positive (“buy”) or negative (“sell”) signal. Trendics is a favorite indicator once a definite trend has been established.
- Maximus – a system using all the indicators, Cycle-Trig,TrueOBOS and the three different Trendic periods or “speeds” of 36, 55 and 21.All these indicators need to confirm each other for a positive (“buy”) or negative (“sell”) signal. Maximus is used mostly in live Forex trading.
The most effective templates are “CycleTrendics” and “Trendics.”