Study Guide for the Second Edition of Technical Analysis: The Complete Resource for Financial Market Technicians

Chapter 9. Temporal Patterns and Cycles

Chapter Objectives

By the end of this chapter, you should be familiar with

• The long (50–60-year) Kondratieff wave cycle

• The 34-year cycle

• The decennial cycle

• Four-year cycles, including the election year pattern

• Seasonal tendencies in stock performance

• The relationship between January stock market performance and the rest of the year

• The relationship between events and stock market performance

Chapter Summary

Periods Longer Than Four Years

Kondratieff waves, or K-waves, are associated with a long 50–60-year cycle studied by Nicolas Kondratieff in the 1920s. Aspects of K-Wave theory include the ideas that waves are attributes of the world economy led by a major national economy and that waves ...