This page contains a Flash digital edition of a book.
TECHNICAL ANALYSIS


formed from a cycle showing a top every five weeks in corn prices, a top every twelve weeks, etc.) was the predictor of top or bottom.


According to increased would their


calculations, this large amount of data


the


likelihood that the combined c ycles


g ive


accurate predictive postures for all the categories of traded ins trument s. The resul ts were quite positive for them.


This was laboriously done before computers.


Obviously, thing s are a bit easier and fas ter nowadays. However, be cause of


vas t computer


power, there is so much data ava ilable today, that another problem exist s


for


traders - wading through massive amounts of differing forms of analyses.


This info overload, when added to the current market moves amidst significantly increased


based on only one data point – price – in each category – stocks, bonds, commodities, or currencies. Cycle analysis takes into account repeating patterns from the past, and assumes these patterns will continue.


Second, there is a growing sense that,


with cycles,


the “craziness” and volatility of currency markets, not apparently explainable by fundamental research, is understandable based on past patterns repeating. This provides comfort to


those


Cycle analysis teaches us that the news is not what is running the markets, but cycles are


for explanations around


looking to


market movements. Clearly, media sources


the


world would like to explain it


otherwise.


However, it must be remembered the media is concerned primarily about one thing: selling advertising space.


Third, cycles also govern macroeconomic indicators as


FX TRADER MAGAZINE April - June 2014 45


volatility, has increased the difficulty of arriving at comfortable trading positions. Cycles can help. They are


The


FX unique tool of utilizing


cycles can also lead to other considerations.


First, cycle analysis


teaches us that the news is not what is running the markets, but cycles are – which affect the market moves occurring at major cycle tops.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92