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It is a well-known fact that markets, not only financial ones, move in certain cycles, which if traders are able to time correctly, they can of course make a decent profit.
Therefore, we are bringing you one of the time-tested trading systems that uses cyclical predictions, and now every visitor of our website has the opportunity to try out the advantages of cyclical trading and who knows, maybe it is the one that will eventually bring the users fabulous wealth.
Strategy entry rules
Entering long positions
1) the newly formed cyclical line is near the bottom (support)
Entering short positions
1) the newly formed cyclical line is near the top (resistance)
How to trade with the strategy
The basis of today's cyclical strategy is the so-called cyclical lines, which are one of the basic components of the metatrader4 platform. In MT4, these lines can be found in the insert tab (see chart above) and then you just need to insert these lines into the chart (on H1 we usually use a 24 trading candle spread between each line, but it is certainly possible to find other, better suited settings).
If the trader has this ready, then he only needs to wait for a new candle to be formed on the next line and if the opening price is closer to the minimum of the whole previous period (the gap between the orange lines), then normally long entries are made, if on the contrary it is closer to the maximum, then it is more profitable to make short entries.
The entries and exits of trading positions are at the discretion of each trader and also according to how much risk they are willing to take in their trading.
The above chart shows that in the case of the cyclical strategy used on the AUD/NZD currency pair, it is no problem to achieve a success rate exceeding 60%, even in the long-term timeframe, where the success rate, although it is not so common in Forex, is much higher.
