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Easy 3- Step Trend Cycle Strategy For Beginner Traders

In this video, you’ll learn the 3 trend cycle strategy I use to stay with the trend. If you are a beginner forex trader, this is a must-watch video.

Hey guys in this video we are going to be talking about the three cycles that create a trending market so if you’ve been having a problem with understanding direction when you should buy when you should sell what’s an impulse what’s a pullback or whatever you call it i’m going to be breaking that down in this video so make sure that you take notes because this video

Is going to go by quick and it’s filled with a lot of detail so let’s get into it when it comes to looking at your price chart one of the first things that you want to ask yourself is what is the trend this is not the time when you want to be placing market structure such as trend lines or support and resistance this is the time when you want a really good handle

On saying i can identify the trend and this is what it looks like these are the highs these are the lows and this is what it is called so the practice pair that we’re going to be going over is aud new zealand dollar on the daily time frame so let’s break it down first based on the highs and the lows and we’re going to talk about what these highs and lows means in

Great detail so let’s start with the first trend cycle and that is the trend continuation if i were to ask you what is the trend what is price doing i am basically asking you what is the natural flow of price it’s the natural flow going up or is the natural flow of price going down now one of the ways that you can actually be able to easily read this is by the

Number numbers alone as you guys can see every time we place a price note tool the prices are increasing the exchange rates are increasing at the highs and at the lows so we can naturally say because price is going up price is in and up trend now one of the things that i want you to always remember is you trade what you speak so the moment we say price is going

Up that means that price is ending up trend and that means that you are the buy year okay keep it as simple as that now every time price was going up in this natural flow we’re going to call that a trend continuation move that’s a trend continuation cycle because when you’re buying you want to buy at a low price and these are lower prices because price are at

Bottom peaks and we’re going to profit on the way up so we’re going to say that we’re a buyer and every time price went up it’s the trend continuation price pulls back price goes back up again trend continuation price pulls back price goes up again trend continuation so that’s the first cycle the second cycle is when price is pulling back so for example you guys

Can see here that even though these are highs the highs when they pull back and they’re causing price to pull back or they’re causing price to retrace some of you guys would even say correct it’s not stopping price from still continuing up after the pullback so these are retracements not reversals but retracements or a pull back against the natural flow of price

So it’s like water if water moves forward and you backstroke you’re moving against the water but it doesn’t stop the water from moving forward in its natural direction okay it’s just you’re going against it and so we will call this a counter move and anytime you get a counter move you may be a counter trend trader or you may wait for price to pull back before you

Continue to go with the flow right so we can see that price went from 111 129 pull back to 1.09219 staying above the last high we see price went back in trend continuation cycle up to 1.11691 pull back staying above 1.09219 went back into trend continuation up to 1.11814 pull back or retraced back down to 1.09900 but then stayed above 1.09528 continued back up to

1.12554 so those are the trend cycles based on an uptrend now it’s the same when price goes into a downtrend it has those same two cycles it has trend continuation and it has retracements so if you ever wanted to know what are the cycles that create a trend continuation retracement both in uptrends and downtrends but let’s talk about the other r word and the other

R word is a reversal so let me show you guys what that looks like so this is a reversal mock-up still based on the same currency pair as you guys can see uh there is a low exchange rate here there was a low a low here and then price went up to 1.05289 and then price dropped going back into trend continuation decreasing down to 1.03292 pulling back or retracing

Back staying below 1.05289 to 1.04572 trend continuation down to 1.03125 so this is what created a downtrend we had to pull back or retracement train continuation pull back a retracement trend continuation but look what ends up happening the last high or lower high in this situation which was at 1.04572 when price made a true continuation move down which means

You would have been the cell lure this is where the last book of sellers came in that price went up to 1.05026 and when it did that that was the reversal that was a reversal so as you guys can see you didn’t need a trend line to show you that you didn’t need support and resistance to show you that we’re trading the rate in which people see value if you see great

Value price will increase if you don’t see great value price will decrease and that is the way the world works and operates right and so when price reverse now we’re saying okay this is a trend switcher so we’re no longer sellers you are now the buyer right because there’s now greater value so we can say that okay if price stays above watch this it’s not 1.04 it’s

The last lowest price if it stays above 1.03 or a dollar and three australian dollar cents and continue to go back up we are going to be ending up trend in the cycle start over so we’ll start seeing these exchange rates go higher pull back go higher pull back go higher it’s opposite when price goes from an uptrend to a downtrend okay so let’s just go back up to

The uptrend now in order for trend to reverse here depends on how you’re looking at this area i’m going to erase this and do another mock-up again let’s just say that price was decreasing and it kept decreasing and price pulled back still a retracement mode but actually went past 1.09900 because that was the last book of buyers in the last trend continuation cycle

Then we will be in a reversal so we will no longer be looking for buys we would not become the seller as long as price could pull back because remember in trading we need pull backs to minimize the drawdown to minimize having a huge stop loss right that’s why pullbacks are important retracement cycles are important all right the further pulls back the more money

You make so if it can stay above one point if it could stay below 1.12554 then you would become the seller and then you will see the cycle start over it will go from pull back trick continuation down pull back trend continuation down pull back trend continue equation down now i want you guys to know that sometimes in trading it’s not easy especially when you add

More terms so it’s called the retracements pullbacks or corrections is whatever floats your boat same for trend continuation you’ll hear people call it an impulse lag and it’s whatever you want to call it but as long as you remember that there are three cycles trend continuation retracements create uptrends and downtrends reversals reverse the trend it reverses

Your action on the chart so you’ll go from a buyer to a seller or a seller to a buyer all right now key thing to remember is time frames the lower end time frames you go the more fluctuations and cycles you’re going to see the more reversals you may see the higher in time frame should go you may see less fluctuations because you’re seeing bigger candlesticks and

You’re going to see less reversals so i want you guys to remember that but here’s what i would like you guys to do to get you used to seeing these trend cycles go to a higher time frame start on the daily and start looking at these highs and the lows and using the price note tool to spot out where the high is where the low is and name it if the if it’s either in a

Pullback cycle trade continuation cycle pull that cycle trig continuation cycle reversal and see how you will actually trade that differently or observe it and analyze it differently okay so let me know your take away from this video like the video if you found value and share it if you would like other people to know the knowledge that you just learned too thank

You guys for watching and i’ll see you guys in the next video

Transcribed from video
Easy 3- Step Trend Cycle Strategy For Beginner Traders By SLFX Trading