Technical Analysis: Power Tools for Active Investors

Chapter 5. Political, Seasonal, and Time Cycles: Riding the Tides of Market Wave Movements

It pretty much goes without saying that seasonal and other cycles that exist in nature are widely known and acknowledged. The seasons come and go pretty much on schedule year after year, bringing with them cycles of growth in vegetation; changes in the behavior of animals (migrations, nesting, births, deaths, hibernation); massive cyclical changes in the Earth’s atmosphere, climate, and glacial movements; and changes in land mass.

Cyclical forces work their magic minute by minute and hour by hour as well. Tides roll in and tides roll out, their larger ebbs and flows interrupted by minor, contrawave movements at the shoreline and elsewhere. This action ...