BraVoCycles

Lesson: How to Use Cycle Price Targets

There are two main ways to use cycle price targets:

1.      When a cycle target is reached, look for a trend reversal; and

2.      When a cycle target is generated, consider adding to your position and plan a possible trade exit point.

We will use the Ethereum weekly chart below to explain the uses of cycle price targets.

The bluish band represents the so-called forward line of demarcation (FLD) for the 40-week (40W) cycle. Read more about the FLD construction in Lesson Price Projection Method 2.

The green rectangles represent 40W upside cycle targets, the red rectangle is the 40W downside cycle target, and the gray rectangle is the 40W downside cycle target that is not fully reached/satisfied.

Trend Reversals When the Price Reaches the Target

§  The price usually reverses/retraces when a target is achieved.

§  This is generally true for all cycles but especially for the longer ones, and especially when the target is the last one in a particular direction.

Lesson – Cycle Price Projection Method Using FLDs

Today, using Bitcoin as an example, I will explain the cycle-based price projection method. In cycle literature, the method is referred to as price projections using the forward line of demarcation (FLD).

Definitions:

-          Cycle period = time distance between cycle troughs;

-          Forward line of demarcation (FLD) = Price shifted by half the cycle period;

-          Cyan line = median of the price bar;

-          TD = trading day;

-          CD = calendar day;

In this example, the FLD band is constructed by offsetting the median price by TD=7 and TD=8 TDs, which correspond to CD=9 and CD=10 CDs for the nominal 20D cycle that is presumed to vary between 19 and 20 CDs.

H1 is the vertical distance between the last low before the median price intersects with the left FLD band boundary and the intersection point.

H2 is the vertical distance between the last low before the median price intersects with the right FLD band boundary and the inter

US Dollar Sentiment

The USD sentiment was extremely bearish at the Jan'26 low. I called the bottom, not just based on the sentiment, but using my EW and cycle analysis.

It's solidly bullish now, but there's still room for even more optimism.

Stay tuned for more on USD.