Trading against a strong dominant cycle

You will know when you have a decent phasing because price will form accurate support and resistance at the FLD of the cycle you are attempting to resolve.


That sounds good in theory but I haven’t observed any recognizable pattern of support, except at B and G category interactions. Sometimes price cuts right through the FLD, sometimes it bounces off it, sometimes it tracks it.

VTLs seem to be more reliable. Maybe I need to find more examples and counter-examples.

Well yes, of course price will cut through the FLD sometimes, thats the nature of the underlying trend pushing on price. With experience you will recognise when things are right.

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Manual phasing is highly recommended. Once I stopped thinking in absolutes, it helped. The most recent action in the Dow is a great example of how price interacts with multiple FLDs as a price wave unfolds. I have usually found one FLD in particular makes the most sense in the context of the interaction categories. This is the dominant cycle. Looking at FLD interactions in 15m, 30m, and 60m time frames has been an eye-opener for me, even when not trading intraday. Then you need to trust the analysis and let it play out. An early exit of my short position cost me 400 plus points Friday. Oh well.