You may have seen traders talking about market cycles like a bullish cycle or a bearish cycle. Knowing the cycles allows you to take advantage of riding a trend from early and possibly catching some big market moves. The Dynamic Cycle Explorer indicator is one such tool that lets you analyze the market phases quickly to help spot potential buy and sell trade setups on all of your favourite currency pairs and chart timeframes.
What is the Dynamic Cycle Explorer Indicator?
As the name suggests, the indicator points out reversals on the chart. Look at the chart below. It shows you an indicator window with several lines. Though it looks a bit complex to new traders, interpreting the indicator is super easy once you know how.
An arrow and a dot appear on the chart around the trigger candle. An arrow pointing up is a buy signal, while an arrow pointing downside signals a selling opportunity. There really is not much more to it, but you can of course add additional market analysis with other indicators and price action analysis.
Dynamic Cycle Explorer Strategy
Trading with the Dynamic Cycle Explorer is very simple with default optimised settings included. While placing the indicator on your chart, you will see the following settings:
There are plenty of settings to play around with. If you are an expert in technical studies, then this indicator offers you a real dynamic scenario where you can modify the settings of any indicator.
However, it is recommended to use the default settings if you are not sure. I find that indicators have usually been developed and provided with certain settings for a reason. You may turn on or off the alerts depending on what you prefer.
After placing the indicator on a chart, simply sit back and relax. You can look for a trade when an arrow appears on the chart. Some trades might look to enter earlier using the zero line of the indicator. This method suits aggressive traders but I think there will be too many false entries trading with it this way.
Here’s the Dynamic Cycle Explorer strategy to find a long signal:
- You can apply it at any timeframe. However, the recommended timeframe is 4-hour.
- Once an up arrow appears, wait for the candle to close and enter the long trade.
- For stop-loss, you can keep around the swing lows or exit in loss when a down arrow appears.
- For take profit, use the next key resistance level as your target.
Here’s the Dynamic Cycle Explorer strategy to find a short signal:
- You can apply it on any timeframe. However, the recommended timeframe is 4-hour.
- Once a down arrow appears, wait for the candle to close and enter the short trade.
- For stop-loss, you can keep around the swing highs or exit in loss when an up arrow appears.
- For take profit, use the next key support level as your target.
Dynamic Cycle Explorer Pros & Cons
- It is a user-friendly tool for beginners.
- You do not need any other indicator for confirmatory analysis.
- You can create multiple strategies with it.
- The input menu is quite long, which may confuse some traders.
- Arrows appear with a lag.
The Dynamic Cycle Explorer indicator is as simple as ABC. You can master it with a little practice. However, you may need to run backtest or try on a demo account before executing on your live account. You can get a free demo account from most forex brokers which is a good way to practice your forex strategies and build some confidence before making a commitment.
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