Time ▾ Price ▴ Research: 04/01/2023

Thursday, April 27, 2023

The 3 Day Cycle | Cameron Benson

The 3 Day Cycle is a recurring market cycle, that when identified, can be the groundwork of a trade setup. It consists of 3 days, and begins with a false break at the current weeks high or low. In his Best Trade Setups Playbook Stacey Burke described the 3 Day Cycle setups as either pump and dumps, or dump and pumps: "They [the market makers] pump, pump, pump, go sideways and drop a bit, one more small pump, then a dump. The dump can go straight down, fast. The pump up, may often be hard to trade on the first day, the price action can be choppy, and back and forth, a slow grinding auction. Other times, you are forced to "chase the move."

Finding Day 1:
Look for a false break above or below a previous day's high or low AT THE HIGH OR LOW OF THE WEEK.

Attributes of Day 1:
1. Breaks Below/Above Previous Days High or Low at the high of the week, and the day closes back inside of previous days range.
a. Sub Variation: Breaks through previous days level and days closes above/below that level.

The following day, price comes back inside of the the range from 2 days ago and closes.
2. Can become a First Green Day or First Red Day (Signal for following day).
3. Day 3 sometimes turns into Day 1 at the close of the day.

Attributes of Day 2 of the 3 Day Cycle:

Day 2 can be either
1. Continuation in direction of false break; or:
2. It can turn into ...
   a.) a First Red Day (FGD)
   b.) a First Green Day (FRD)
   c.) an Inside Day
   d.) a Trend Day

Areas of Interest:
1. High of the Day/Low of the Day (HOD/LOD)
2. High of the Session/Low of the Session (HOS/LOS)
3. Outside Day/Inside Day (Was there a false break?) (Act as Support/Resistance)
4. Low Bear/High Bull (Support/Resistance)

Day 2 Trade Setups:

- Long/Short Squeeze
- Parabolic Trend Trade
- High of the Session/Low of the Session (HOD/LOD) Trade
- High of the Day/Low of the Day (HOD/LOD)
- Low Hanging Fruit (LHF) Continuation (Trend Trade)

Method:
1. Support/Resistance References:
a. Low Bear/High Bull
b. Previous Days High/Low
c. HOD/LOD
2. Measure 3 Levels of rise/fall from Low/High of day for potential strike zone.
3. Use Support/Resistance References as additional confluence.

Attributes of Day 3 of the 3 Day Cycle:

1. Day 3 is the last day of the 3 Day Cycle.
2. A lot of times Day 3 can turn into Day 1, either on the current day or the next day

(Reset of the Day Count).
3. Day 3 can either become a blow off trend continuation day (in the direction of the trend) or a reversal day.

Trade Setups:
1. Parabolic/Capitulation Trend
2. Reversal HOW/LOW
3. LHF Continuation (Trend Trade)

Areas of Interest:
1. Low/High of week
2. Previous Days High/Low (Support/Resistance/Trapped Volume)
3. High/Low of Day
4. High Bull/Low Bear (Support/Resistance)
5. OD/ID (Outside Day/Inside Day)

Reference:

Cameron Benson (Feb 9, 2023) - THIS Market Cycle Made Me A PROFITABLE TRADER.

Cameron Benson (Mar 5, 2023) - 3 Day Cycle Deep Dive.

Cameron Benson (Mar 30, 2023) - Trade Management.

Stacey Burke (2022) - Mastering the Day Count (4 Videos).

The 3 Week Cycle | Cameron Benson

There are multiple ways of Week 1 taking place:

1.) Price breaks out and fails at the High/Low of the month above or below a previous weeks high/low.
2.) A 3 Week Cycle has completed (gone through week 1,2,3), but has not reversed on week 3.

I refer to this as a "revolving door" style a.k.a. Trending Model of the 3 week cycle.
3.) A breakout occurs above/below previous weeks level, and on the following week reverses back above/below that level.
4.) On week 3 the market reverses BUT on the following week the market continues in the previous direction (a.k.a. Reset).

Reference:
Cameron Benson (Apr 27, 2023) - THIS 3 Week Market Cycle Will SIMPLIFY Your Trading.
Cameron Benson (Apr 27, 2023) - The 3 Week Cycle (pdf slideshow of the above video).

Wednesday, April 5, 2023

Unity and Source | Seyyed Hossein Nasr

Omnia in uno sunt, et in omnibus unum.
All things are in one, and in all one.
Athanasius Kircher (1663)

» Ultimate Reality is at once Absolute and Infinite, the source of all being, of all consciousness and of all life. Itself beyond form, it speaks to mankind through revealed forms which, while externally bound and limited, open up inwardly towards the Boundless. Through revelations of this Word or Logos come into being the sacred traditions which although outwardly different are inwardly united into a Center which transcends all forms. They are, however, the bridge from the periphery to the Center, from the relative to the Absolute, from the finite to the Infinite, from multiplicity to Unity. «

Seyyed Hossein Nasr

Quoted from:
Seyyed Hossein Nasr (1976) - Ultimate Reality.

Foreword to Keith Critchlow - Islamic Patterns. An Analytical and Cosmological Approach.

Only the Right Side | Jesse Livermore

» It takes a man a long time to learn all the lessons of his mistakes.

They say there are two sides to everything.
But there is only one side to the stock market; and it is not the bull side or bear side but the right side.
It took me longer to get that principle fixed firmly in my mind

than it did most of the more technical phases of the game of stock speculation.

I have heard of people who amuse themselves conducting imaginary operations in the
stock market to prove with imaginary dollars how right they are.

Sometimes these ghost gamblers make millions.

It is very easy to be a plunger that way.

It is like the old story of the man who was going to fight a duel the next day.

His second asked him, "Are you a good shot?"
"Well," said the duelist, "I can snap the stem of a wineglass at twenty paces," and he looked modest.
"That's all very well," said the unimpressed second.

"But can you snap the stem of the wineglass while the wineglass is pointing a loaded pistol straight at your heart?" «

Jesse Livermore

Quoted from:
Edwin Lefèvre (1923) - Reminiscences of a Stock Operator.

ICT Weekly Range Profiles | Michael J. Huddleston

These profiles are conceptual models that describe typical patterns in how prices might behave during a trading week. Each profile has unique characteristics that can guide traders in anticipating potential market movements. However, it’s important to note that these profiles are not rigid predictions but rather frameworks to understand market tendencies.

The weekly price movement in financial markets follows a recurring pattern of consolidation, expansion, reversal, expansion again, consolidation, and a potential reverse or retracement:

Sunday Open Consolidation: The week often begins with price consolidation on the Sunday open, reflecting a cautious approach as traders assess the weekend developments.
Monday Expansion: As the trading week gains momentum, Monday is typically marked by an expansion phase. This reflects increased activity and movement as traders react to new information.
Tuesday Reversal: The following day, Tuesday, often witnesses a reversal in price trends. This can be attributed to traders reassessing their positions after the initial expansion phase.
Wednesday Expansion: Midweek, the market tends to experience another expansion phase. This reflects a renewed bout of activity and movement in response to evolving market dynamics.
Thursday Consolidation: On Thursday, there’s often a consolidation phase. Price ranges may narrow as traders assess the overall sentiment and prepare for the end of the trading week.
Midweek Friday Reverse or Retrace: As the week approaches its close, Friday may see a reversal or retracement in trends. Traders might adjust their positions before the weekend, leading to a shift in price direction.