Cycle

The natural rhythm of highs and lows visible on a chart. A daily cycle is the the shortest cycle we study. They typically last from 2 weeks to 2 months in duration. An intermediate, or investor cycle is the sweet spot for us. They typically are 4-8 months in duration, and are made up of multiple daily cycles. We wrote a more in depth article on how we trade cycles.

You will hear us talk a lot about whether a cycle is right- or left-translated.

We are referring to whether the peak of the cycle is to the right or left of center. It matters, because generally, a right translated cycle makes a higher low, and a left translated cycle makes a lower low. An example of each can be seen in this chart.  (This chart is best viewed in a full browser window.  Click here to open this article in a full browser window.)