Building on The Cycle Framework, this course moves from theory to tactical application.
Lesson 1: The Market Cycle
The Stock Market Cycle has 4 stages.
Lesson 2: The Money Line
The Money Line converts emotional noise into mechanical clarity.
🔴 Red = Sell Mode = Downtrend
🟢 Green = Buy Mode = Uptrend
Key Lesson: The crowd sells pain and buys comfort. The professional does the opposite.
Lesson 3: The Radar Cycle
The Radar Cycle also has 4 stages.
Market Phase | Money Line | The Algo | Explanation |
Markdown | 🟢 → 🔴 | Stop | The trend is down. |
Accumulation | 🔴 | Radar | The trend is sideways. |
Markup | 🔴 → 🟢 | Alerts | The trend is trying to go up. |
Distribution | 🟢 | Trims, Targets | The Trend is up. |
Each stage represents a sentiment shift confirmed by technical behavior — a live translation of market psychology into color-coded truth.
Stage 1: Markdown (Stop)
🟢 → 🔴
🔴 Red = Sell Mode = Downtrend
The trend is down, and stop losses are hit. Oversold conditions begin. We should expect more downside until proven otherwise.
Stage 2: Accumulation (Radar)
🔴 Red = Sell Mode = Downtrend
The trend is stabilizing (going sideways).
Stage 3: Markup (Alert)
🔴 → 🟢 (attempt)
🔴 Red = Sell Mode = Downtrend
🟢 Green = Buy Mode = Uptrend
The cycle is still oversold, but is now trying to go up. The Algo is attempting to call a bottom as it is happening, as in before it has happened.
Radar will provide an ETA and forecasted R/R on the Alert.
This is when we get Alerts.
Stage 3.5: Markup (Trim)
🔴 → 🟢
🟢 Green = Buy Mode = Uptrend
Buy Mode Activated. We are now looking to derisk the position by trimming. Once we trim, we cannot lose (with our risk parameters).
Stage 4: Distribution (Target)
🟢 Green = Buy Mode = Uptrend
Buy Mode Continues. We are now looking to exit the position at our Target. Selling into strength.
Stage 4.5: Distribution (Backtests)
🟢 Green = Buy Mode = Uptrend
The trend is your friend. The money line is up. The backtests are for buying.
Key Lesson: Buy the dip mode until we close below the Money Line.
Stage 0: Markdown (Stop)
🟢 → 🔴
🔴 Red = Sell Mode = Downtrend
The trend is down, and stop losses are hit. Oversold conditions begin. We should expect more downside until proven otherwise.
Rinse. Repeat.