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This Figure illustrates the probable times when time cycles have influenced the market on the chart, marked by two vertical lines and the time interval between them. Time cycles may have impacted the market within and around this interval, causing a trend reversal from bearish to bullish. The same principle can be applied for a reversal from bullish to bearish.

In Figure above, which illustrates the trend changing from sideways to bearish, it is expected that time cycles may impact the market at the first vertical line from the left, within the range between the two vertical lines, or when the candles break through the downward-sloping orange line. The reverse scenario can be considered for a trend change from sideways to bullish.

Working with time cycles

Working with time cycles is a highly advanced topic. If you have not yet developed sufficient expertise in understanding trends and identifying highs and lows in the market, avoid attempting to analyze time cycles. For first ease, do not focus on pinpointing the exact timing of these cycles on the chart. Instead, consider a broader time range, as demonstrated in the figures presented in this section.

A crucial point in analyzing time cycles is considering the reference timeframe. Time cycles can impact the market in any timeframe, and a trend reversal in one timeframe does not necessarily mean it will be apparent in a higher timeframe or lead to reversals in subsequent timeframes. In previous sections, we discussed how to select an appropriate timeframe. You can integrate this knowledge with the current topic for a more comprehensive analysis.

As stated, the topic of time cycles is quite advanced, and a thorough examination would require a separate book. This section and the next one aim to provide you with a more accurate perspective on trend reversals and an initial understanding of time cycles. In the next section, we will delve

deeper into the relationship between time cycles and trend reversals to enhance your understanding.

The main and final point is to follow the market, regardless of the tools you use. The crucial aspect is to carefully analyze and determine the direction of movement, specifically the balance and imbalance between buyers and sellers.

Time Cycles and Trend Reversals

To grasp how time cycles influence the market, it is essential to understand various market dynamics, including upward and downward trends, sideways trends, corrective movements, and trend reversals.

A trend reversal indicates a change in the direction of an asset's price movement. Contrary to a common misconception among traders that a reversal only involves the price moving in the opposite direction, it encompasses more comprehensive shifts. The correct understanding of a trend reversal includes any change in the overall direction of price movements for stocks, securities, currencies, futures, and digital currencies. Such reversals are categorized on charts into three types:

1. Transition from an upward to a downward trend, or the reverse.

2. Change from an upward or downward trend to a sideways trend.

3. Shift from a sideways trend to either an upward or downward trend.

These categories will be examined further with chart examples int section below.

Reversal from an Upward to a Downward Trend

Figure depicts a reversal from a downward to an upward trend, with the reverse scenario applicable for an upward to downward trend reversal.

Reversal from an Upward to a Sideways Trend

Reversal from an Upward to a Downward Trend

Figure shows the transition from an upward to a sideways trend, applicable similarly for a shift from a downward to a sideways trend.

Reversal from a Sideways to an Upward Trend

Reversal from an Upward to a Downward Trend

Reversal from a Sideways to an Upward Trend

Figure demonstrates changes from a sideways trend to upward

Time Cycles

Working with time cycles

Time Cycles and Trend Reversals

Reversal from an Upward to a Downward Trend

Reversal from an Upward to a Downward Trend

Reversal from an Upward to a Downward Trend

Reversal from an Upward to a Sideways Trend

Reversal from an Upward to a Downward Trend

Reversal from an Upward to a Downward Trend

Reversal from a Sideways to an Upward Trend

Reversal from an Upward to a Downward Trend

Reversal from a Sideways to an Upward Trend

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