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Video: The 40 Week Bounce and Underlying Trend

This latest video from Sentient Trader’s David Hickson explores the recent 40 week bounce we have been expecting as Hurst traders for many weeks. In addition there is a discussion of underlying trend, a very important and powerful concept when trading cycles.

From my point of view I expect this 40 week low to be breached in the second 80 day cycle of the 40 week cycle. There are four 80 day cycles in one 40 week cycle. If it is broken within this first 80 day cycle the outlook is more bearish.

The bounce itself has been very profitable, exceeding its T2 target for the interaction with the 20 day FLD, which was an ‘A’ category interaction. Of course this is expected with a bounce of this kind of magnitude. The NASDAQ has enjoyed an especially powerful bounce. Clearly there were bulls ready to buy, even at this stage of the underlying 9 year cycle, making new highs. The European markets started from lower and it remains to be seen whether we have seen the peak of the 9 year cycle in the DAX, FTSE etc. I believe we have and will be looking for a great shorting opportunity in several weeks.

There is also a quick look at the EURUSD forex pair which is tracing out really nice cycle shapes so far. I will be interested in going long at the forthcoming 20 week trough IF price has not breached the potential 54 month low, made in March.

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