How to determine Forex Market Cycle Length in forex online trading

Market cycles are indicators that are linked with the general mood of the market. By analyzing the indicators we can identify different market trading opportunities that are lucrative. Forex market cycles are going to facilitate forecasting and stand out as the basis of trading hypotheses. Currency cycle length will vary. We can have short, medium and long cycles.
Forex Market Cycles Explained
In any Forex chart we will see all price movements of choosing currency pairs presented as waves. The lower portion of any wave is named trough and the upper portion is named crest. Market cycles are basically time frames between 2 crests or 2 troughs. They can be classified into 3 groups based on time frame:
1. Short Term Forex Market Cycles – Such a cycle lasts for 100 to 400 hours
2. Medium Term Forex market Cycles – The trades last for 20 to 24 days
3. Long Term Forex Market Cycles – losing between 35 and 45 days.
Trends are defined by cycles that will frequently repeat themselves and a trend is the basis of a Forex forecast.
Calculating Market Cycle Length
In order to calculate this length we can simply measure the time frame between 2 crests or 2 troughs. Ideal models have uniform distances between the 2 high points or the 2 low points determined. In Forex, however, a regular pattern is really rare although cycle lengths are usually similar.
In order to properly measure the market cycle we will use an average distance. By doing this we gain different advantages but have to follow a few rules.
The first step is to find some bottoms that have time frames we can compare on a chart and then measure the length. Then we need to calculate the average time that a frame lasts. We will thus have an average number but we need to check for validity. We do this by making sure that the average period will show a difference of less than 15% when compared to the shortest and longest periods. When the number we obtained is validated we can use it in order to obtain a forecast of when the next bottom period will appear in a Forex market cycle. In similar fashion we can calculate high points in Forex market cycles.