The following Seven rules make up the Cycle Date System

1. Trade Only In The Direction Of The Trend!!

Follow the smooth osc2 histogram if positive (Green) the trend is up. If negative (Red) the trend is down.

2. Trade Only On Or Near Cycle Dates

+/- one trading day is the window in which to initiate trades.

3. Market Must Be Heading Counter Trend Before Trade is initiated

Look at the gold line of the smooth osc2. It is giving the short term direction (cycle). It must be in contrast to the histogram ( if histogram is green or positive the gold line must be pointing down for a buy. The opposite is true for a sell)

4a. Enter the Trade on a Limit Order

Buy a few ticks above the next lowest support or sell below the next highest resistance levels with a limit order.

4b. Alternate Entry

If the above limit orders are NOT filled and the close is positive for the day buy the yesterday's close plus a few ticks for long positions or sell yesterday's close minus a few ticks stop close only. (SCO)

5. Move Stop To Break-Even at Next Resistance level

Initially stops are placed below second or third lowest support levels for long positions and above the second or third resistance levels for short positions. When one Resistance or Support level is crossed move stop to break-even. Due to small volativity sometimes two resistance levels may need to be crossed before stops may be moved.

6. Move Stop As Market Moves In Your Favor

Move your stop up below support levels when resistance levels are exceeded if long. If short, move your stop down above resistance when support levels are broken. The stops get continuously moved as profit runs in a stairstep manner.

7. Exit On The Resistance/Support The Day of A Cycle Date

If long positions are taken, and the market has moved up, exit and take profit just below next highest resistance level. This should be done on the day of a Cycle Date. If short, exit just above the next lowest support level. If the above exits are not executed and the the market has moved up if long or down if short exit on the close. At times, this will leave some money on the table but, the percentage of winners will greatly increase and in the long run one will be better off.