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Most trading systems fall into two categories.
The profits acquired during the long-term trends will, hopefully, recover the monies lost during trendless activity. The other category takes advantage of trading ranges, and the trader makes the most money when the market's primary direction is sideways. Here's a trading system that incorporates both approaches to time entry and exit positions. Market technicians looking to pinpoint market tops and bottoms have long been fascinated by the cyclical activity of markets. The oscillator, which is the class of indicators used to model the cyclical nature of markets, typically will filter the trend out of prices, leaving only the tradable cycles.