The Market Cycle

[Trader Question]

Well I quess this counts as Congestion Entrance Down I think I've experienced the the whole cycle now. 2 weeks ago when I started doing my analysis the mkt was in the process of bottoming then last week we had the rally and now we have a top and a move back down and so it starts all over again
It has been a good learning experience and now I know what to expect at each stage of the trading cycle - just hope I remember it all and can get better at it I think I've learned what works and what doesn't also I've learned that you can't trade the 60 min on its own - there has to be a HTP P&L tool to back it up.

DM

[pldot]

Yes, you're getting a complete dose of market "cycle. "

The most important part of what you have said you are seeing below is the HTP coordination... that's the ballgame. The rest is just detail.

[Trader Question]

Its getting interesting!!

Reading up on Congestion Action and the question is - the Weekly is in a Trend Run up still although hanging on by its finger nails. So the next trading should be Congestion Entrance UP- Right???

The Weekly PLDot is at 906 & the Weekly "Live" PLDot is at 912. We closed Tuesday at 912 and the overnight is trading up to the Daily ET.

DM

[pldot]

===not to daily envelope top but to daily envelope *bottom*.

[Trader Question]

So if the HTP is in Trend Run up the "Daily" should not be able to setup congestion action but go back up into Congestion entrance UP according to the course.

DM

[pldot]

===this is muddled and does not make sense. You're confused on this.... Daily blocked yesterday.
Only possible trading today is congestion action. Review the definitions.

[Trader Question]

Obviouly the week is not in a c Wave -so its up trend is in jeopardy

DM

[pldot]

==that much is right

[Trader Question]

but the "Monthly" is in Congestion Action up which provides some energy pushing up.

DM

[pldot]

====monthly is in congestion action bar, that is correct, but that is an of itself does not say there will not necessarily more energy up today. We hit the monthly etop and thus the question is, do we head back to the monthly dot or not?

===The weekly has had a dot refresh and is still as we write in a trend up, and so the next possibly trading is congestion entrance down or continued trend up, no other alternatives possible.