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

In the previous two chapters, we looked at ways to measure the sentiment of market players and the internal strength of the stock market. In those chapters, we saw that the market alternates between periods of strength and weakness. A major market cycle appears when market players become more and more optimistic, sometimes ...