What is the market cycle?

You may have heard the phrase that “the market moves in cycles.” A cycle is a pattern or trend that appears at different times. Market cycles with larger time frames are usually more reliable than market cycles with smaller time frames. However, you can eventually find small market cycles on the hourly chart, just as you would when looking at decades of data.

Markets are cyclical, and cycles can cause some asset classes to outpace other assets. In other parts of the same market cycle, the same asset classes may underperform other types of assets due to different market conditions.

It should be noted that it is almost impossible to determine where we currently are in the market cycle at any given moment. This analysis can only be performed with high accuracy after that part of the cycle has finished. Market cycles rarely have clear beginning and end points. As it turns out, being present and judging the market in the current moment is an exceptionally biased view of the financial markets.