Technical Analysis: The Complete Resource for Financial Market Technicians, Third Edition

Chapter 19. Cycles

Chapter Objectives

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

• The controversy about whether cycles exist in financial market data

• How cycles are defined by their amplitude, period, and phase

• Detrending data and plotting centered moving averages

• The major methods of determining cycles in market data

• The major methods of using cycles to project future price highs and lows

Throughout this book, we have seen how prices trend, but the trend does not occur in a straight line. Prices oscillate up and down around a trend. These oscillations form the trading ranges, patterns, and channels we have discussed. Could it be that these oscillations have some sort of regularity? Believing that they do, cycle analysts ...