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Technical Analysis Explained, Fifth Edition: The Successful Investor's Guide to Spotting Investment Trends and Turning Points, 5th Edition by Martin J. Pring

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25 PRACTICAL IDENTIFICATION OF CYCLES

This chapter discusses some of the basic principles of cyclic analysis and uses examples to illustrate some simple techniques that help in their identification.

Cycles Defined

A cycle is a recognizable price pattern or movement that occurs with some degree of regularity in a specific time period. A market, stock, or indicator that has a relatively consistent price low at 6-week intervals is said to have a 6-week cycle. That successive lows are higher or lower than their predecessor is of no importance in identifying the cycle. What is significant is that there is a clearly definable “low” point every 6 weeks, separated from its predecessor by a high point known as the cycle high. Figure 25.1 shows some possible ...

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