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 ...

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