Business Standard

Cycle indicators that traders can use to predict stock movement

The two major cyclical indicators that assists in identifying the shift in cyclical trend are: Commodity Channel Index (CCI) and Detrended Price Oscillator (DPO)

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Illustration by Binay Sinha

Avdhut Bagkar Mumbai
Markets move in cycles and this is what drives the markets to various probabilities and possibilities. To ascertain the current market scenario and shift in sentiments, one needs to first be familiar with various means to determine the cyclical trend. The various phases of the markets depend on economic development, seasonality, some unpredictable events and Indian elections, among others things.  A few of these factors repeat often which enables market participants to anticipate the next move and thus spot a trading opportunity.

Although, cyclical trend isn't the most reliable for short-term trading, long-term investors put great faith in it. Investors

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First Published: Dec 31 2020 | 8:38 AM IST

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