Market Trend vs Market Cycle
Which method is better, trend following or market cycle trading?
The concept of market cycles is uniquely defined within Supply & Demand trading methods only. Most traders know and agree that fluctuations in market Supply & Demand are what causes the financial markets to alternate between Long and Short market cycles. A Long Market Cycle being one which reflects periods of increasing Demand for an instrument while a Short Market Cycle reflects periods of increasing Supply for an instrument.
Since Long and Short market cycles are the result of fluctuations in market Supply & Demand, it follows that if Supply & Demand can be accurately and reliably measured, one can also reliably determine and reasonably predict the corresponding market cycles.
Because market cycles can be clearly defined, it is possible to detect changes in market cycles (i.e. Market Cycle Reversals) at a very early stage meaning either before they occur or as they occur.
The ability to detect changes in market cycles at a very early stage is the main reason market cycle trading tends to be more profitable, generally speaking, than trend following.
Which method is better, trend following or market cycle trading?
The concept of market cycles is uniquely defined within Supply & Demand trading methods only. Most traders know and agree that fluctuations in market Supply & Demand are what causes the financial markets to alternate between Long and Short market cycles. A Long Market Cycle being one which reflects periods of increasing Demand for an instrument while a Short Market Cycle reflects periods of increasing Supply for an instrument.
Since Long and Short market cycles are the result of fluctuations in market Supply & Demand, it follows that if Supply & Demand can be accurately and reliably measured, one can also reliably determine and reasonably predict the corresponding market cycles.
Because market cycles can be clearly defined, it is possible to detect changes in market cycles (i.e. Market Cycle Reversals) at a very early stage meaning either before they occur or as they occur.
The ability to detect changes in market cycles at a very early stage is the main reason market cycle trading tends to be more profitable, generally speaking, than trend following.
Using the FIA, traders need only "Sell the Highs" & "Buy the Lows".