Cycle Analysis
Market cycles and timing analysis for forex trading
Market Cycles & Time Analysis
Cycle analysis studies repetitive patterns in market behavior across different timeframes. Markets move in cycles driven by economic seasons, lunar phases, weekly patterns, and mathematical sequences like Fibonacci. Understanding these cycles helps hubs time entries, exits, and anticipate market turning points with higher probability.
Seasonal Patterns
ANNUAL CYCLES
Recurring market patterns based on calendar months and seasons affecting currency performance.
Daily Time Cycles
INTRADAY PATTERNS
Daily trading session cycles and optimal times for different currency pairs based on market hours.
Fibonacci Time Cycles
MATHEMATICAL SEQUENCES
Time-based Fibonacci projections identifying potential turning points based on mathematical ratios.
Lunar Cycles
CELESTIAL PATTERNS
Moon phase correlations with market behavior, particularly around new moon and full moon periods.
Economic Cycles
BUSINESS CYCLES
Long-term economic expansion and contraction cycles affecting currency strength over months and years.
Weekly Patterns
DAY-OF-WEEK EFFECTS
Systematic patterns in currency performance across different days of the week and weekly cycles.
Trading with Cycle Analysis
Cycle Identification
- 1Measure time between major highs and lows to identify dominant cycles
- 2Look for regular intervals: 7-10 days, 2-4 weeks, 2-3 months
- 3Use spectral analysis or FFT to identify hidden periodicities
Trading Applications
- 💡Time entries around expected cycle lows for trend continuation
- 💡Anticipate trend changes near cycle highs and reversal windows
- 💡Combine cycle analysis with price action for high-probability setups
Common Forex Cycles
Short-Term Cycles
Intraday- • 4-hour cycles (6 cycles per day)
- • 8-hour cycles (3 cycles per day)
- • Session-based cycles (Asian/London/NY)
Medium-Term Cycles
Daily/Weekly- • 7-10 day cycles (weekly patterns)
- • 20-22 day cycles (monthly)
- • 45-50 day cycles (quarterly)
Long-Term Cycles
Monthly/Yearly- • 6-month seasonal cycles
- • Annual calendar effects
- • 4-year presidential cycles
Cycle Trading Rules
✅ Best Practices
- • Combine multiple cycle lengths for confirmation
- • Use cycles as timing filter, not standalone signals
- • Focus on dominant cycles (most reliable patterns)
- • Allow 10-15% variance in cycle timing
- • Higher timeframe cycles are more reliable
❌ Common Mistakes
- • Over-relying on precise cycle timing
- • Ignoring fundamental market changes
- • Using cycles in trending markets only
- • Not adjusting for holiday/event distortions
- • Forcing patterns where none exist