How the Hurst Cycles change in a strong market trend

In the previous article you saw that:

The movements in the market are the result of the sum of several market cycles.

If you sum the Sine Wave of your selected cycle with the waves of the Sub-Cycles you will get the Battleplan.

But, what happen when you try to sum the Battleplan with the Sine Wave of the bigger cycles?

Let’s find it out!

The standard Battleplan

Once again, this is the standard movement of a cycle without the influence of any bigger cycle.

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  • 2 Long entries on the first and second cycle.
  • 2 Short entries on the third and fourth cycle.

Same amount of pips on both the direction.

Battleplan + Bullish Trend

When a Standard Cycle is influenced by Bigger Bullish Cycle (Dotted grey line) the result will be:

bullish

  • The Battleplan will turn BullishThe second minimum will be higher than the first one. (Green arrows)
  • The third cycle, instead of being neutral, will do a Higher High.
  • The bullish leg (Green line) will last longer and will be longer (quantity of pips) than the bearish leg (Red Line).

Example:

Blue line – Standard cycle. || Black line – Bigger cycle

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Battleplan + Bearish Trend

When the Bigger Cycle (Dotted grey lineis bearish the top of the cycle will be on the second sub-cycle.

bearish

When the bigger trend is bearish is advised to trade the BattlePlan only on the short side.

Why? Because the bearish leg will be longer (more pips) and the winning probabilities are higher.

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Conclusion

How can you improve your trading using this information?

By always trading in the direction of the bigger cycle.

Even if the smaller cycles are doing higher highs and lows, the overall trend will always be stronger and price, soon or later, will come back in the original direction.

 

AND YOU?

Do you adapt your strategies to the current market trends?

Let me know in the comments!

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