Sunday, September 2, 2007

Natural Cycles



In the style of Gann this post is going to be some what cryptic. Some of the best cycles to use are Natural Cycles. Mainly because they are easy to project into the future as well as the past when they are found.

Nature squares the circle. The image on the left describes 1/2 the amount of the cycle. It also describes the nature of the cycle and the nature of one of the cycle's key components in at least two ways.

The chart below shows the GBPUSD daily chart going all the back to late 1980. The red verticle lines mark off 32° of this particular cycle. Each olive colored line is 1°. The key degrees are 32° and halving down to 1°.





Price doesn't always conform perfectly to Natural Cycle but it's usually within 1-2 degrees. Below is an up to date 4 hour chart showing how relevant the cycle remains.



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