Always Late to Market Reversals? Here's How to Spot Turning Points Across Multiple Cycles Before Everyone Else

 

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Most retail traders know the frustration: by the time you recognize a market reversal, it’s already too late. The big move has happened, and you’re left chasing scraps.

Recently, international gold gave us the perfect example — a 1,500-point rally in just one week. Those who spotted the turning point early rode the wave; those who didn’t? They watched from the sidelines.

So here’s the big question: how do you judge a true turning point across multiple market cycles?

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Step 1: Always Start “Top-Down”

When analyzing markets, there’s one principle you can’t ignore: big to small, top-down.

• First, analyze the large cycle (weekly or monthly) to understand the long-term direction.
• Then zoom into the medium cycle (daily or 4-hour) for trend confirmation.
• Finally, drop down to the small cycles (1 hour, 30 minutes, 5 minutes) to fine-tune your entry and exit.

Think of it as building a house — you don’t start with the furniture; you lay the foundation first.

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Step 2: Learn the Anatomy of an Inflection Point

A turning point (or inflection point) isn’t random — it has a recognizable structure. Let’s take the example of a bearish market turning bullish:

1. Decline stops → the market stops making new lows.
2. Rebound → short-term strength appears.
3. Breakout → price smashes through the downward trendline or horizontal resistance.
4. Pullback to support → price retests the breakout level and holds.

That sequence — the stop, the breakout, and the confirmation — is your bullish DNA. Miss one step, and you’re probably chasing noise, not a reversal.

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Step 3: Look for Multi-Cycle Resonance

Here’s the secret sauce: real turning points resonate across cycles.

For example:

• Daily chart shows a bullish candlestick signal (like a bullish pregnancy line).
• 4-hour chart confirms with a stop-loss signal and a breakout of the trendline.
• 1-hour chart shows an N-shaped rebound or platform breakout.
• 30-minute & 5-minute charts give you a sniper entry point on the pullback.

When all these cycles align in the same direction, that’s not coincidence — it’s resonance. And that’s where high-probability reversals are born.

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Case Study: The 1,500-Point Gold Rally

Let’s walk through it:

• Weekly chart: Gold was still in a pullback phase, looking bearish.
• Daily chart: A bullish pregnancy line appeared — early reversal signal.
• 4-hour chart: Breakout above the downward trendline, forming an N-shaped rebound.
• 1-hour chart: Platform breakout with continuation signals.
• 30-min & 5-min charts: Gave precise entries on pullbacks after breakout.

Add in macro catalysts — Russia-Ukraine tensions and U.S. election policy shifts — and you had both technical and fundamental resonance.

The result? Five straight bullish days, over 1,500 points in profits.

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Step 4: Don’t Forget External Resonance

Here’s the truth most textbooks won’t tell you: markets don’t live in a vacuum.

Turning points aren’t just about charts — they’re influenced by:

• Geopolitical conflicts (wars, elections)
• Economic data releases (jobs, inflation, Fed policy)
• Policy direction (stimulus, rate cuts, government backing)

When technical resonance meets external resonance, the move is explosive.

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Final Thoughts

Market turning points aren’t accidents — they leave footprints across cycles. If you discipline yourself to:

 Start top-down
 Identify the structure of inflection points
 Look for multi-cycle resonance
 Confirm with external events

…you won’t just be reacting to the market — you’ll be anticipating it.

That’s how you stop being “always late” and start catching those 1,500-point moves before everyone else notices.