The above chart shows another example of how to combine the Cycle Trend signals with Divergence Analysis to increase the probability of a successful trade outcome. Early morning price weakness continued from prior session to challenge major support at 863.00. Buyers then took charge and bought up all the current supply creating Con-Ex (Contraction-Expansion Oscillator) Divergence. The PTG Cycle Trend correctly identified that the current down cycle to be ending and issued a Buy Alert. The astute trader should be now considering initiating a new Long position at major support given the combination of Cycle Trend Buy alert with Con-Ex divergence. OK…All we need is the “trigger” to enter the trade long. The previous post shows the 610 tick chart which is the execution chart most widely used by PTG members. It also fired off a Cycle Trend Buy at the 863.00 level confirming major support. Profit targets are at the Wave Price Targets WPT‘s displayed on the chart. ( click on chart to enlarge ) This Cycle Buy signal was worth approximately 10 points from entry to exit which was the opposing Cycle Trend Sell signal at high of day.
Combining Cycle Trend Buy and Sell signals with divergence analysis can improve the risk/reward of trade setups. Of course as with all trading there are no certainties, only probabilities. Traders job is to choose favorable trade setups and control initial risk.