Friday’s break below the daily cycle trend line confirms that the dollar is in a daily cycle decline.
The dollar peaked on day 19, which assures us of a right translated daily cycle formation. The dollar also managed to close above the upper daily cycle band during this daily cycle. That ended the daily downtrend and indicated that February hosted an intermediate cycle low. Friday was day 25 for the dollar’s daily cycle. That places the dollar in its timing band for a daily cycle low. A swing low will signal a new daily cycle. The dollar is in a daily uptrend and will continue in its uptrend until it closes below the lower daily cycle band
The daily cycle peaked on day 40, locking in a right translated daily cycle formation.
Stocks printed their lowest point on Thursday, following the day 40 peak. The swing low on Friday indicates a new daily cycle. A close above the 10 day MA will signal a new daily cycle. Stocks continue to close above the upper daily cycle band, indicating a daily uptrend. Stocks will remain in its daily uptrend until it closes below the lower daily cycle band.
Normally we would like to see break below the daily cycle trend line before looking for a daily cycle low. But this daily cycle is extremely right translated and it did not happen. Setting aside the trend line break there are other signals that help to determine a daily cycle low. Timing band is one of the criteria. Also normally present in a daily cycle decline is the True Strength Indicator delivering a bearish zero line crossover also along with the formation a weekly swing.
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