Sunday, September 11, 2011

Trading Plan: Cycles can be identified with the Hilbert Sine Wave Indicator


To avoid trading breakouts in the wrong direction, the current market cycle (up/downtrend) can be identified with the Hilbert Sine Wave Indicator, that plots support and resistance areas on the chart depending on which phase we are currently:


Note: Sometimes we are in a down phase but no entry setup happens (up trendline break and close below low of prior two bars) In that case we have to wait for the setup to occur and consider the market pause as just a pause and no reversal

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