Segments of Market Cycles
The movement of stock prices actually takes place within a series of cyclical segments, which comprise larger cycles, which, themselves, comprise still larger cycles.
Each cycle, again, consists of two segments, an A segment and a B segment. For example, the 56-day cycle shown in Chart 5.2 can be divided into two segments, the first lasting 24 days and the second lasting 32 days. Segments do not necessarily match precisely in time length, length of price movement, or even basic direction, but A and B segments tend to be relatively equal in length.
Each of these segments, A and B, can itself be divided into two segments. In Chart 5.2, the 24-day segment could be divided into a 13-day segment and an 11-day segment. The ...