O'Reilly logo

Future Trends from Past Cycles: Identifying share price trends and turning points through cycle, channel and probability analysis by Brian Millard

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

14. Bringing it All Together

Although the primary predictive tool is the cycle sum, we saw in the last chapter that it is dangerous to rely on just this when taking a trading decision. There is a logical sequence that must be followed if consistent success is to be obtained.

Four Key Steps

If you have a software package that will calculate cycle sums and channels, the steps are:

  1. Get the cycle sum, as discussed in Chapter 13, and make sure that the cycle sum is as close as possible in shape to the comparator nine-day centred average. As we mentioned previously, only about 10% of the securities in any one market will satisfy this test.
  2. If the cycle sum agrees with the comparator, construct the 51-day and 101-day channels. Analyse these ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required