Trading Cycle Model

The Trading CycleTaken from the Greek word “kyklos” meaning circle or returning to the point of origin. A rhythm or frequency of repetitive nature as in weather or in regular oscillations from peak to trough in a time series. row represents a model that searches for instances when time and market price direction may align based on cycle counts.

Unlike the other ArrayOne of four core Socrates Platform models. Arrays is collection of time-based models presented in a graphical overview to help identify potential highs, lows, and important changes in trend and volatility for a given time level. rows that alternate between two colors to show a change, the Trading Cycle colors have a specific association from the model:

  • A red bar indicates a bearish cycle count of time units from the last market high. The higher the red bar, the higher the cycle counts relative to other time units, which indicates the possibility of a market establishing a relative low.
  • A green bar indicates a bullish cycle count of time units from the last market low. The higher the green bar, the higher the cycle counts relative to other time units, which indicates the possibility of a market establishing a relative high.
  • A yellow bar indicates when bullish and bearish cycle counts converge on the same time unitThe time level being considered: days, weeks, months, quarters, or years.. The higher the yellow bar, the higher the cycle counts relative to other time units, which indicates the possibility of a relative market high and low in the same time unit.