This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
Everything is cyclical.
This isn’t a new observation – if we go back to ancient Greek philosophy, there was a consensus that the circle was the expression of perfection precisely because everything cycles.
Financial markets, as a reflection of the changes in how people value things, are cyclical as well.
Some asset classes are more likely to fall into cyclical patterns than others. Commodities and Forex especially are prone to cycle up and down, which makes understanding market cycles and knowing how to identify them, an essential aspect of long term forex trading profitability.
We measure some cycles in decades, while others are short enough to affect day trading.
But, they all follow a pattern and are one of the basic aspects of the forex markets upon which technical analysis is built. After all, predicting the future is about identifying patterns and projecting them forward.
So, what do we need to know about cycles?
Breaking Down the Wheel
We can identify market cycles,...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.