Cycle Trends

If you want to become a better day trader, you need to learn about these two types of trends, cycle trends and range trends. You rip through a trend and you start soaring in that direction, but it's important that we identify which type of trend we're breaking through in order to understand how high or how low something's going to go or if it's a false breakout. So the first rule to drawing any trend is on the top side of your chart. You need to go green to green. So acc So your base and reach point of your trend has to attach only to the green candles. It doesn't matter how high the red ones go, don't use them. And on the bottom side of the chart, we use only distribution candles. So red to red. So you're going to take a cycle trend. Now range trend is more interior. It's the smaller part of the move. It's a much more compressed trend on the inside of your chart. A cycle trend is going to be the larger trend on the biggest part of your chart. So the highest wick up on the top that you have green to the highest wick on the following part of the chart. That's also green. And that's going to be your cycle trend. And the reason we call it a cycle trend is it can break.