Cycle Trading

[Duma]

This is exactly the same strategy that Greg presented in his chartwatchers article. However if you look at his charts they covered almost 5 years. I am trying to be more patient, but I don't know if I will ever attain that level. Notice that he had to use a log chart, which I actually don't like. However, I think he is very solid and well worth watching.

But I am going to play a shorter type game. AAPL this year has had two 60min swings up and two down. The current one has gone on since the middle of May, so I know I am getting in long into the cycle. I don't expect to make a lot on this cycle, but I want to get my head into the game.

The chart below may give you some ideas. I find the CC250 very telling along with M65. I also plan to use my ratio chart.

AAPL YTD is only up 12.7% ytd so it is lagging NASDAQ which is at 17.8%. But just trading the quick trade lines I put on the charts turns the year into 28.9%.

I can hold SPY during correction cycles (to a point), but not individual stocks. They tend to drop too much and I tend to be over 100% invested with them.

In the past I way over traded my 60min charts. But using M65, it allows for more dips. Remember for SPXL and TQQQ, I allow M65 to go to zero before I take any action. For individual stocks, they may be a bit late. EOD signals are a real big help as verified by what happened last Monday.

Just some thoughts, work in progress for me also.