Cycles are a tool and should not be used to the exclusion of other tools. There is always the possibility (high probability long term) that the data will be misinterpreted or a relevant fact over looked. So use cycles to check your analysis, not as the only reason to make a decision. Interpretation is the opinion of the author and may be incorrect and should be viewed in that light.
Friday, October 22, 2010
Discovering cycles in a stock - INTC
How does one identify cycles in a stock? Well we could always eyeball it. Problem with that is we may see what we expect to see. So using INTC I will show you a more mechanical way to try and ID cycles. When I first looked at the INTC chart I could make no sense of it (I use Stockcharts.com). So I went to annotate and used the vertical line tool to draw some equidistant lines to try and highlight cycles. I will discuss other techniques for IDing cycles later. Here is what I came up with.....
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