The NCTA Cycle Finder Plus indicator is designed to identify for traders an indication of a shift in the market cycle.
When two time periods, such as the 3min and 10min, are paired together, the Cycle Finder Plus provides a strong indication of the near term, directional bias of the underlying equity.
3/10 minute charts are excellent time frames for traders.
Options traders will benefit from using the Cycle Finder Plus on a to identify the probable cycle direction of a stock near the opening of the market.
Cycle Finder Plus can be used on most any timeframe and will present the indication of a market cycle shift based on that timeframe.
The indicator consists of two market . One is consider the basis, or the current direction of the market cycle. The second is referred to as the Lead which is the leading indicator for a possible shift in the market cycle direction. The indicator also divides the range into zones showing a sell zone and a buy zone.
The Cycle Finder Plus indicator is used by looking for the Lead (blue) to cross over the Basis (red) . This cross is a signal that there is a probable shift in the current cycle of the market.
HOW TO USE: The most effective way to use this indicator is to have it displayed on two time period charts (3min / 10min) and look for alignment between both timeframes.
When the Cycle Finder Plus are in the sell zone (above red horizontal line) and the Lead (blue line) crosses down, below the Basis (red line), this is a signal to take a short position.
When the Cycle Finder Plus are in the buy zone (below green horizontal line) and the Lead crosses up (blue line), above the Basis (red line), this is a signal to take a long position.