CYMO’s cycle indicator identifies short-term market cycles. Most technical indicators react to changes in price. CYMO is unique in that it anticipates turning points, providing an edge over conventional technical indicators. We show how CYMO anticipates cyclic turning points below.
The chart below shows one complete cycle of a hypothetical price chart in orange alongside the CYMO cycle indicator in blue. In this example, prices oscillate between support and resistance levels with no trend component. Our price model is that of a theoretical sine wave.
We use 1-minute price bars for convenience. Prices start midway between a peak and valley, rising to a peak after 2 minutes and then falling to a valley after 6 minutes. The entire hypothetical cycle takes 8 minutes. The cyclic frequency is therefore 1/8 cycle per minute.
At each price peak (valley), we can anticipate the next valley (peak). We see this in the blue CYMO cycle indicator. Note the indicator crossing under 0 when prices are at a top (peak) and crossing over 0 when prices are at a bottom (valley).
In the next section, we will show how CYMO’s momentum indicator follows the cycle when prices are cycling. Understanding the relationship between cycle and momentum is key to successfully trading CYMO’s unique mean-reversion (i.e., reversal) trading technique.
Real-world prices are messy; they consist of varying proportions of cyclic, trend, and noise components. In addition, market cycles are ephemeral, seldom lasting for a complete period. CYMO uses advanced digital signal processing techniques initially developed for the radar and defense industries to extract actionable cyclic patterns from noisy market data.
As you’ve seen, CYMO isn’t just another technical tool—it’s a robust system that uncovers the underlying rhythm of the market, tapping into a level of precision rarely matched by traditional indicators. This unique edge is your entry into a world where market turns aren’t just reacted to; they’re anticipated, giving you the foresight to act decisively and confidently.
Imagine applying this technology to your trading strategy, where each decision is informed by the anticipatory power of CYMO. The possibilities are not just intriguing; they’re potentially profitable! We’ve just scratched the surface here. There’s so much more to explore and understand about how CYMO can transform your trading.
Are you ready to see these cycles in action? To truly understand the potential of CYMO, you need to experience it firsthand. Click here to dive deeper into the CYMO Pro experience and see what it can do for your trading journey. Join us, and start trading ahead of the curve.
Note: The above article is provided for informational purposes only and should not be considered as financial advice. Always do your own research and consult with a professional financial advisor before making any investment decisions.
