Below is a 30-min chart of the SPY with the
Inverted and
Regular
Cycles (
as I wrote about last weekend).

Here is the same chart, only this time including the
PTT's (red line -
Price and
Time
Targets) and the
CTL (purple line -
Cyclic
Trend
Line). Confused?

Well, the hardest problem I have seen with Stevenson
Price and
Time
Targets was determining when the
Inverted
Cycle ends and the
Regular
Cycle begins in
real-time. According to Stevenson, this happens when price makes a close outside of the
CTL.
As a refresher, the
Cyclic
Trend
Line (
CTL) is drawn by connecting the most recent swing low to high, this line is then moved outward so that it touches only a single price point.
However, when doing this in real-time you'll never know whether the previous high will be taken out (invalidating the end of the
Inverted
Cycle and confirming the continuation of the
Regular
Cycle in which you're in), so you'll have to continuously watch for strength or weakness at previous swing highs/lows (perhaps a very good habit to be in).
For example; If you're in the second half of an
Inverted
Cycle (price moving higher) you will be expecting a transition into the beginning of a
Regular
Cycle once price breaks the
CTL). But once price breaks the
CTL there is still just as much likelihood that price may continue making higher highs. Therefore, you should always be looking for a retest of the
CTL, or some sort of price topping (or bottoming) pattern.
Referring back to the above
overview chart (30-min) that includes
CTL's (purple lines), I'll include the same
CTL's on our
trading chart (the 5-min).
This first chart shows the day of Jan. 20. where we're in the tail-end of a
RC. Price closes outside of the
CTL, but that's not an actionable signal. We wait for price to tell us whether we'll likely make a lower low (and continue the
Regular
Cycle), or whether we should look to get long in anticipation to ride the beginning of an
Inverted
Cycle up.

After a low was made, price rose and tested the previous support level, before selling off (market internals likely telling you to sell resistance?). Price then began to stabilize and base at that resistance level, before breaking out, much more of an actionable sequence.
Now lets move to the end of that day and the beginning of the following Thursday. We have a
Cyclic
Trend
Line in place which price tests at the open. Right away we get a bear flag, Open range breakdown out of the
CTL (beginning our
Regular
Cycle down).

Once this
CTL is broken we anticipate the beginning of an
Inverted
Cycle. We see a bottoming pattern develop in the form of an Inverse Head & Shoulders, we buy the breakout, but price gets sold. OK, so we get stopped out, but we learned a valuable piece of information. We learned that sellers are still prevalent in the market and price may want to go lower (at least to test the lows perhaps).
Finally, I'll include the last two days in the
SPY with the
CTL's in place. Notice we had closes outside of the
CTL with some tradeable pullbacks to this line that coincided with technical patterns (i.e. a Head & Shoulders breakdown into the close of 1/21 and the open of 1/22, a lower high breakdown around 12:30 on the 22nd).

I hope this isn't too difficult to follow. If it is, I would love to hear from people who might have valuable input. Anyway, trade in the direction of the cycle!