This question only matters for trading indices using the 1-minute or 5-minutes frameworks
For any question like this one:
Can I trade Cycle 2 knowing Cycle 1 was volatile?
Can I trade Cycle 4 knowing Cycle 3 was volatile
Default answer: NO
Better answer: NO but if you do I'm not responsible
Best answer: NO but if you do probably a great idea to aim for a bigger pullback ZONE past the EMA 20
Then we'll receive some counter-argument like:
YES, but I saw yesterday that cycle 2 was volatile even after a very volatile cycle 1
YES, but I saw yesterday that cycle 4 was volatile even after a very volatile cycle 3
Counter counter argument
To that, we answer the below
Those rules are valid most of the time.
Sometimes we'll get consecutive volatile/non-volatile cycles.
Our goal is to maximize your probability of winning - which means trading the setups the more likely to give you the well-deserved hundreds of pips per day.
More details available in the Trading method Indices 1-minute
A quick caveat
Counter counter counter argument :)
It's 100% true that during times of high volatility (as seen in the beginning of 2020) that the concept of cycles may seem irrelevant.
However, VIX won't stay that high forever and will come back to
normal level at some point.
So I prefer recommending a setup giving you good habits for the most common market conditions.
And then, you won't lose all your gains when trading not volatile cycles when the
corona crisis will be over and trading ranges.