August 2024 Cycle Forecasts

Key points for using cycle charts:

• The cycle charts will have three cycle forecasts:

  • Cycles Composite (Blue) - This is the most important forecast that determines direction. The Cycles Composite is our “Secret Sauce” and is a combination of all of the cycles we look at. It focuses on the question “what’s the direction”.

  • Energy Cycle (Pink) - This tends to help with estimating the power behind a move. When the Cycles Composite and Energy Cycle point in the same direction we notice the most impulsive moves. It focuses on the question “what’s the degree”.

  • Seasonal Cycle (Green) - This is the annual seasonal cycle and is a yearly expectation of what the investment tends to do over time. When it moves with the Cycles Composite and Energy Cycle it confirms the move by providing further confluence. When it does not confirm, the Cycles Composite and Energy Cycle is often the better guide. It focuses on the question “what do people expect”.

• Cycles often catch the exact turning point, however they more often show the general direction and changes of energy.

• For profitable trading, combine cycle charts with technical analysis, using indicators like the 10-day EMA, 21 EMA, or 20 SMA for managing trades.

• Be aware that cycles can invert, meaning the price action may contradict the forecast. Monitoring price action at key inflection points can help in adjusting strategies accordingly.

• Cycles are generally less reliable for assets with shorter histories.

Use this guide to enhance your investing or trading strategies. Good luck, and always manage your risks.

Disclaimer - All materials, information, and ideas from Cycles Edge are for educational purposes only and should not be considered Financial Advice. This blog may document actions done by the owners/writers of this blog, thus it should be assumed that positions are likely taken. If this is an issue, please discontinue reading. Cycles Edge takes no responsibility for possible losses, as markets can be volatile and unpredictable, leading to constantly changing opinions or forecasts.