What is presented in the article is not a strategy or a system, but an analytical technique to support your trading process. It also has a probability, so you need to have more matching for more confirmation.

As we know, each transaction day has its own cycle. And the month is the same. In this article, we will use the monthly cycle to identify trading trends.

A month is also divided into 3 cycles. A month has 22 or 23 working days, we can divide the period of price fluctuations at the beginning, middle of the month and the end of the month into 3 parts, including 7-8-7 days, or 7-9-7 days.

The idea behind monthly market analysis is because we notice that many months the market moves in a certain cycle. In which, the beginning and the end of the month are the time when the market is active. However, it is not always possible for the market to start a specific trend at the beginning of the month. Price direction at the beginning of the month is usually halted or reverses in mid-month and then tends to trend towards the end of the month.

The chart below is a USDJPY pair with 6 cells. Every 3 cells represent 1 cycle consisting of 3 periods in 1 month.

August - Cycle 1

During the first cycle of August, the market fell slightly before rising sharply.

August - Cycle 2

When the USD / JPY price was in mid-August, the price started to peak and is likely to reverse. And then the market plummeted.

August - Cycle 3

The end of the month will usually end similar to the trend at the beginning of the month when it opens. During this last cycle of August, when traders re-entered the market and pushed the price back to the highs.

September - Cycle 1

At the beginning of the month, the market increased clearly.

September Cycle 2

However, this rally has lost momentum, especially in mid-month. During this period, prices reversed strongly, falling deeply.

September - Cycle 3

When going to the end of the month, the market bottomed out and was pushed up strongly. The market closed again like the uptrend at the beginning of the month when it opened.

It is the characteristic of the monthly cycle, giving traders a broader and broader view of the market as well as indications of how price action will work the next time of the month.

Traders can rely on price action as the market converts at each period of the month to predict reversals as well as predict market trends. However, traders should incorporate additional price action or technical indicators for further confirmation.

▶️Telegram : https://t.me/cryptostationchannel

📚Edu Station : https://t.me/educryptostation

⛑Support Form : https://forms.gle/q6J62HiZmoW8pKwK8