Buying stocks, forex or futures during high volatility market cycles may lead to the opposite result of what you’re looking for. Stock market research indicates that the best time to buy stocks may be before a stock market trend, when you have rolling stocks, channeling stocks or other contraction price patterns.
So today we continue with our series on market cycles by covering expansion/contraction cycles.
As usual, the “retail” trader usually times these cycles perfectly wrong!
Learn about these market cycles and how to time them like a professional trader.
Although I use a stock market reference here (and the chart is one of the stock market) everything in the video can be applied to Forex, futures and commodities as well.
Enjoy the video and please post your comments/feedback below.
Hi Barry – I really enjoy your video’s they are very intuitive..
Thanks,
Tristan Gibbons
Thanks for this latest lesson on volatility cycles. As usual, its a model of clarity in communication terms. Unfortunately, though, the sound cuts out at around 7 minutes, so not able to complete viewing the entire video.
Barry
When are you going to produce a video that is useful for someone who has more than a weeks trading experience.
Tommy
Dr. Butns I really appreciate your generosity in providing these helpful training tips they make so much more sense than some other things I’ve read and studied, Thanks again. John
Good morning!
BB’s and cycles was interesting and instructive!
Question is… How to trade them?
Thanks, Barry!
Millowena
For all the years I’ve been looking at Bollinger Bands I’ve never heard them described like Barry’s insight. Barry’s training has brought my trading to a level up until now I could only have desired for. He really allows me to put a microscope on the market for the best and most probable entries into the market. I wish anyone wanting more from their trading would study Barry’s courses.
Great video. I had never heard the Bollinger Bands so succintly explained. I would like to hear how to trade the contraction cycle. How can you tell whether it’s going to break out to the upside or the downside? You did a great job covering that in your Foundations Course #2, but I could still use more elucidation on the subject.
Insightful as always. Thanks!
These types of explanations help to develop a framework to understand patience necessary to make money in the markets.
would e nice to know the time frame of the chart ref volatitity cycles
Hi Dr Barry Burns
It is an excellent video clip on how to appreciate the expansion and contraction modes of volatile cycles in a typical market.
Regards
Peter
Dr. Burns,
You are truely a Top Dog! I have been enjoying you videos, they are very informative so keep them coming. Thank You very very much.
Was trying to watch the video about market cycles but i would not load on the page. So i was not able to watch it.
Will try again after i get home from work.
Thanks…
C.D.
Barry,
What a great video…. I did not even realize how often the market goes into contraction/expansion and that the best time to get in is on a contraction cycle…
My problem now is how to integrate this into my charting platform without overloading myself with information and using it wisely with my timing cycle indicator.
I have heard some authors talk about trading the Bollinger Band Squeeze, I guess this is exactly what they are referring to.
Its very interesting to me how often you show that markets go from expansion to contraction.
Thanks Barry!
Dr. Burns, thanks for these blogs! I find all of your insights to be spot on and communicated in a way I can understand.
Hi Barry,
Thanks for the valuable lesson. Since you have touched on patterns: How reliable are they in predicting the direction of the next move in day trading timeframes (5min to 30 min)? And how to scan for low volatility? Eye-balling only? Which parameters can we use on daily charts? I hope my questions may help you prepare another lesson! 🙂
Many thanks,
Adam.
Adam,
The volatility cycles have nothing to do with direction. For that you have to look at a directional indicator along with the expansion/contraction cycle.
Scanning for volatility can be done on many different programs – depends on the program as to how you would do it. But many of them have a scan for a “Bollinger Band Squeeze.”
Barry
very nice explained! thanks for this one again.
Excellent Video. Opened my eyes to the use of bollinger bands to measure up volitility, expanding/contracting cycles.
Hi Barry! Thank you for providing these great lessons on the market. As new traders, we appreciate your willingness to share your knowledge and expertise with us. We look forward to more from you!
Dr. Burns,
Thank you sir for all your efforts, you have taught me well.
Tom C
Hi Barry,
The 5 day mini course is very interesting. I trade on the UK sports exchange (Betfair)mainly in the horse racing markets due to to their high liquidity. The difference being that unlike other trading markets, the action takes place within a 10 minute window prior to the race starting. The software I use supports charting and market analysis and I can see all the same patterns that you descibe but, my question is, can it be possible to analyse the information and put it to practical use in such a short timescale bearing in mind that sometimes there are 20 – 50 trades executed in that space of time?
Chris,
Yes, these volatility cycles apply to short term time frames as well as long term. Absolutely.
Barry
Dr. Burns:
A very useful explanation. It helps me to analyze the expansion/contraction moves. I really like others to follow your learning tools to build up confidence. Please keep up your good work.
Thanks again for a job well done.
Sincerely,
Apurba
good idea 🙂
is it the same as in finding entry in sideway mode?
Dr. Barry,
Thanks again for shareing more “great tools” thst I can insert in my ever-expanding “Dr. Burns Toolbox.”
I am feeling like a prospector of gold discovering nuggets just before I enter the goldmine. (YOUR COURSES!)
Regarding cycles related to the Forex market – I have visions of being a highly successful scalper.
Any ideas regarding how one can make everthing as objective as possible. Can I assign or use numbers in finding and using cycles as related to your 5 energies?
Thanks and Warmly,
Larry
Hi Larry,
Yes, my methodology makes the analysis and counting of the 5 energies very objective. So much so that you can add them up and keep a score card on any set up – giving it a rating of 1-5. A “5” would have all 5 energies aligning at the time of entry and therefore be considered a very high probability trade. That’s what my trading method is all about and my courses teach.
Barry
Dr. Burns :
I just watched all of the videos on cycles. Very informative – thanks very much. I have a couple of comments / questions :
I’ve used charting software that has Fibonacci lines that can be stretched out over the time scale on the chart. Do you think that would be helpful to point out the cycles ?
I just read an article in a trading magazine about buying an ETF like the SPY at the close on the last day of the month, and holding the position for two to four days. That would have worked great this past month, as well as most of the time in the several year period they backtested in the article. What are your comments on this calendar cycle ? Thanks again.
Nick
Thanks Barry. I completely agree that timing is everything. You offer us yet another way to analyze the market to help with the all important aspect of proper entry and exit.
Barry, your latest video on market cycles expansion/contraction was great – I found your advice on when to get into a trade – after contracton mode – and your examples of chart patterns for this was very helpful.
Thanks for sharing this!!!
Hello Berry,
The video stops at 1:21 min. into the video.. I am excited about hearing the information..
Linda
Barry I really learned a lot from this video. Your videos are very informative and straightforward. It is almost like you are opening up my eyes to what trading is all about.
I am very glad that you are around.
Thank you Doc for posting this. Enlightened me to just looking at price action. Keep up the good work!
hi Dr. Barry this video was really helpfull because i was doing mistakes with some of my trades but i couldn t work out why but this video made me realise that the cycle volatility can be the key along with the other energies.THANKS
would be great have a live trading video where u could show us in real time the power of bollinger
with cycle volatility,if possible.
Thanks ,im glad i came across your web site and follow your trading method
joao garcia
Thank you very much for explaining how to easily see these cycles using Bollinger Bands.
Thanks Barry, I never heard it put like that before. I really think it will help, with my timing the markets. Thanks
Hi, Barry,
Just watched your video on volatility cycles. Good, clear, and educational information. I have never partial to Bollinger bands, but will now look at them in a different light. Good stuff.
Thank you. Ken
Your 5 mini series videos are very informative.
I will try to use the SMA correctly to identify the trend.
Thanks
Thanks for the contraction and expansion lesson. In order to play the contraction would it be wise to put in two orders, one for a breakout to the top side and one for a downside breakout with one cancelling the other?
Barry’s videos are one of the best on the internet, simple, clear but very informative. I never thought using 50SMA as main trending line, it’s only after I watch Barry’s video did I suddenly realized that.
Hi Barry, I found your 5 day mini course very informative. Thank you, John
Thanks Barry you have a way to look the market diferent and easy.I have been study the forex market for 2 years and I learn more for you that in that 2 years ,I would like to buy yuor cours when I can I will do,so for now just I keep waching your free stop and thank for that.GOD BLESS YOU
Barry,
Thank you for sharing your seasoned knowledge. Knowing your background, that you were raised in a family where trading was a part of your daily life,
I realize you are sharing things that have stood out over the years to be gems and jewels in your trading
crown. I am honored to be able to learn from some
one who has earned much respect in this business.
I like this new edge you have given us about contraction and expandsion using BBs.
Excellent demonstration on using Bollinger Bands.
Thank you, Barry, for your continued help.
Larry
I have heard of trading with Bollinger bands but no one has ever told me what to look for in any way that would help until I saw your video. I have been learning & taken many courses over seven + years. I am possibly going to become a trader if I keep working on it with your help. I will let you know how it works out. I have only been your student for about a week now, so it is too early to tell. I am taking it slow because you’re teaching me I have a lot of virus’ in my trading style to get out of the brain so I can compute correctly.
Interesting topic on cycles…You are well-versed in many areas of TA…However, as I listened I was some what shocked that you never mention Elliott Wave….It is very obvious the market moves in patterns of 5 and 3….
My question is why don’t you address how Elliott Wave moves in cycles. If you don’t subscribe to the theory of Elliott Wave, I would not be interested in purchasing any of your courses….Good luck and trading…
Hi Tony,
I’ve used Elliott Waves for years, and the study of it really changed my trading. The only challenge is that it can be subjective, so I’ve developed my own version of it which is completely objective so everyone will get the same wave count.
Barry
Dear Barry,
I always seem to find some new insight or clarification from your work. The more that I study your methods, the greater my appeciation of the power and rigour of your approach.
Thanks,
Richard
UK
Great information as always from you Barry
Barry,
Another excellent video. Thanks so much for your analysis.
Dr. Barry,
Thanks for the education and videos. I always learn something from them. Appreciate the generosity.
Thanks Barry. I have never used the Bollenger Bands in this manner before. It appears when used with the other energies, this could be a very useful addition.
Dear Dr. Burns I really enjoyed your video. There is always something to be learnt from your videos.
Thank you and kind regards
I really enjoyed the video. Great !
Barry – as one of your video newsletter subscribers for over a year now, I was wondering how the use of BB fits into your trading methodology? I have not been using them up till now but found this video most informative and adds another layer to my analysis. Also, how does one evaluate BB across two time frames?
I appreciate your valuable instruction, as always.
Hi Liz,
I just use the expansion/contraction energy cycles, but I personally don’t actually plot the Bollinger Bands on the chart as I don’ t need them. But it’s fine to put them on there if you want the visual aid – it does make it easier to see.
Barry
Hi Barry
Your video has been inspiring for further excellence.
I have heard this explained by someone else a year ago, but your presentation is very clear. You speak slow enough and simply put things into perspective. It’s nice to have reminders that there are right ways to approach the market and the amateur way. Thanks.
Hi Barry,
Thanks for the useful tips. Been away, so have some catching up to do.
very clear bollinger band teaching
Another great insight, and another indicator goes into my trading tool chest. Thanks!
Thanks Dr. Barry Burns,
Great video. This put it in perspective.
It is the principle of the cycle that is important here.
Dougie
You would have to be one of the best or the best presenter I have come across. A really great tudor. Thanks for you guidance.
Barry. Many thanks, very informative for a novice trader. So much to learn. Thanks for adding to the knowledge bank
Roger C
It’s funny…
Just when you think you know it all, is just the moment when you realise you know nothing at all.
A big thank you from a humble trader.
Thanks Barry,
The way you explain things is superb, you make complex concepts easy to understand and I’m very grateful.
You should come to England and do some seminars over here.
Karl
Training in the Midlands UK
Hi Barry this has helped me to understand how to use the Bollinger Band.
Barry I have learnt a lot from your video lessons
I watch them over and over again to get further
more meanings from your wordings and explainations
as there is more to it than meets the eye.
Every time I watch your same video I get more
new understanding and I would watch your same
video again to gain some more knowledge.
I can not thank you enough.God bless.
Excellent demonstrtation how to use BB. Thank you!
Eva
First of all I would like to say great blog!
I had a quick question which I’d like to ask if you don’t mind.
I was curious to find out how you center yourself and clear your head prior to writing.
I’ve had a difficult time clearing my thoughts in getting my ideas out. I truly do take pleasure in writing but it just seems like the first 10 to 15 minutes are lost just trying to figure out how to begin. Any suggestions or tips? Cheers!
Pretty nice post. I just stumbled upon your blog and wanted
to say that I’ve really enjoyed brokwsing your
blog posts. After all I’ll be subscribing to your feed and Ihope
you write again very soon!