3. Reversal - Trading Cycle Low
The TC Low (Trading Cycle Low) Pattern Overview
Pattern Identification: The Trading Cycle Low (TC Low) pattern is recognized by its occurrence every 15 to 28 bars, specifically from one Low point to the next Low point in the market. This cycle focuses solely on Low-to-Low movements, excluding highs, making it a significant cycle count within the market's structure.
Cycle Structure: After a TC Low, the market typically experiences an upward movement for 4 to 9 bars, entering what's known as the Alpha Cycle, before retracing back to a Beta Cycle low. While smaller Greek Cycle counts may occur intermittently, the primary emphasis remains on identifying the next TC Low.
Count Display: The current count displayed on the screen represents the number of bars elapsed since the last TC Low, visible across up to 15 different time frames simultaneously.
TC Lows and Moving Average Relationship: TC Lows consistently occur below the 15-period moving average. If a TC Low is anticipated and the market significantly deviates above the 15-period moving average, it may signal a potential opportunity to reduce long positions or prepare for selling into the TC Low.
Market Trend Consideration: While TC Lows typically ascend in an upward trending market, they may exhibit a downward 'stair-stepping' pattern in a declining market. Understanding this directional bias of TC Lows is essential for gauging market trends accurately.
Reversal - Trading Cycle Low | Settings
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.