Sunday, September 9, 2007

Idealized 9 Month Cycle














There is a great article on cycles at www.decisionpoint.com. The article breaks down a nominal 8 year cycle down to an idealized 9 month cycle. Within the 9 month cycle are two phases of a 20 week cycle and 4 phases of a 10 week cycle. Techincally, a complete cycle is in 2 phases. A positive phase and a negative phase or your typical sine wave.


I went back to a major swing low in Feb. 07, 1993 on the GBPUSD weekly chart to start the cycles. This past week culminated in the arrival of all 3 cycles. Attached below is a weekly chart showing such. The blue verticals are 10 weeks, magenta 20 weeks, and brown 9 months. This 9 month cycle could also be considered a Natural Cycle for obvious reasons. Either way, the article is an excellent guide to cycle trading. http://www.decisionpoint.com/TAcourse/Cycles1.html

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