Pattern Identification: The Trading Cycle Low (TC Low) pattern is characterized by its occurrence every 15 to 28 bars, specifically from one Low point to the next Low point. This focus on Low-to-Low, excluding the highs, marks it as a significant cycle count within the market.
Cycle Structure: Following a TC Low, the market tends to move up for 4 to 9 bars, entering what is termed the Alpha Cycle, before descending back to a Beta Cycle low. This pattern is interspersed with smaller Greek Cycle counts, but the primary focus remains on identifying the next TC Low.
Count Display: The current count displayed on the screen indicates the number of bars elapsed since the last TC Low, presented across up to 15 different time frames simultaneously.
TC Lows and Moving Average Relationship: Notably, TC Lows occur 100% of the time below the 15-period moving average. If a TC Low is anticipated and the market is significantly above the 15-period moving average, it may be prudent to consider reducing long positions or preparing to sell into the TC Low.
Market Trend Consideration: It's important to recognize that while TC Lows typically ascend in an upward trending market, they can exhibit a downward 'stair-stepping' pattern in a declining market. This aspect is crucial for understanding the directional bias of TC Lows.
The Trading Cycle Low (TC Low) settings in the Online Trading Solutions Market Pulse App offer traders customizable options to tailor the feature according to their specific trading needs and strategies. Here's a detailed explanation of the various customization options available for the TC Low settings:
1. Show TC Low Cycle:
This option allows you to toggle the display of the Trading Cycle Low (TC Low) Cycle on or off. It's useful for focusing on specific analysis types or simplifying the app's interface.
2. Detrend Source:
Choose the value on the bar (e.g., high, low, close, open) to use in the TC Low calculation. This setting lets traders select the most relevant data point for their cycle analysis.
3. Detrend Period (EMA Length):
Set the length of the Exponential Moving Average (EMA) to use in the TC Low calculation. This length affects the sensitivity and responsiveness of the TC Low to market changes.
4. Start Low Count:
Define the number of bars from the last TC Low that should be considered for identifying a new TC Low. This setting helps in pinpointing the start of a new cycle based on your criteria.
5. Start Greek Cycle Count:
Specify the number of bars to wait before considering the Greek Cycle count. Note that this setting is not directly related to the TC Low pattern but can be used for additional cycle analysis.
6. Thresholds for Background Colors:
Set up to three different threshold values to determine the background colors used when the cycle count is a certain number of bars away from the last TC Low. These color codes help visually indicate how close or far the market is from a potential TC Low.
By customizing these settings, traders can fine-tune the Trading Cycle Low feature in Market Pulse to match their personal trading approach. Adjusting these settings allows for a more tailored analysis of market cycles, enhancing the trader's ability to make informed decisions based on their specific strategy and market view.