Market Cycles

A cycle is simply a regularly occurring sequence of events. The sun rising every morning and setting in the evening is a cycle. The four seasons are one cycle. In forex market, a cycle is loosely defined as price movement of a market from a local bottom to a local top and back again.

Cycles, just like price trends, can be long, short or intermediate in length. A specific market may have a 20 day, 52 week and 5 year cycle, all acting together to describe price activity. By adding the cycles together, the actual price activity can be forecast.

Market cycle analysis attempts to find recurring major and minor peaks and troughs in price movement for better trade timing. Here are some examples of forex market cycles.

See also:
How to use MetaTrader to find market cycle

The 30-day cycles in the EURUSD daily chart

The 25-week cycles in the AUDUSD weekly chart

The 200-hour cycles in the AUDUSD 8H chart

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