1. As a trader one must understand that markets often trends in more than one direction at the same time and thus one must not get confused by the same. When one refers long term trend or primary trend; it means a trend which is measured in years. 3 weeks -6 month trend is referred as intermediate trend. Last but not least is a short term cycle which may be referred to as a period less than 3 weeks.


2. An index can be in an uptrend for several years whereas the secondary cycle may correct downwards over a number of months. Always remember that long term trend influences short term trend. it is also worth noting that in an up-trend, rallies tend to be stronger than corrections. In a down-trend, corrections are mostly stronger than rallies.

3. As a precaution do not get mused by movements on daily or intra-day charts and do remember to cross check this information against at least 2 time frames.

4. Also undertake estimation of the length of a cycle by measuring time taken between consecutive peaks (or troughs). Always keep the long term trend in the back of mind and against it determine the strength and direction of the cycle being traded.



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