Cycle Trading

[Duma]

My rules are written on the chart and you have them right from what I can see. However there is one rule that is not written there and that is that M65 needs to be flat or increasing. I follow my M65 phases always to know what phase the market is in. Going long in a declining market never works. There needs to be some sign the market is turning. A flat M65 is my sign. So at the point of my trade the market (or at least TQQQ) was transitioning from DS (distribution) back to MU (mark up). Always be long during AC (accumulation) and MU. See my board intro for a fuller explanation.

If you want to actually trade the subwave such as w2 or w4 during a decline in the market, then one can ignore that rule. But be ready to exit fast when the market turns. My rules are set up to not let me exit fast, so that I can stay with the longer term trend until it really does die. This always cost me more $ at the end of my trades that I like, but that is the price I have to pay to not be taken out of the trade too early.

So the basic rule as you noted is trade long when M3 XOZ (cross over zero) and sell when M5 XUZ (under). Note I have a special rule if the last wave ends in a blow off top where the closes exceed the uKC (upper KC).