Saturday, April 14, 2018

April 16, 2018 weekly outlook

If you have followed my blog you should have noticed that one cycle spans two or more shorter cycles.  Generally we focus on shorter span cycles for swing trading.  The Wall cycle (20 week cycle) is the longest cycle we use for our trading:


The same  principle applies that longer cycles span multiple cycles of shorter time spans.  For example there is a cycle called the Kitchin cycle (named for a man of that name).  Ideally a Kitchin cycle is 42 months long but may vary some (so it is 3 1/2 years long and encompasses 3X 14 month cycles referred to as Third of a Kitchin cycle.  A Third of a Kitchin is 14 months or 3X20 weeks. (20 week cycle is often called the Wall Cycle (this cycle was first identified by PQ Wall) . So you can see why I rely heavily on the 20 week cycle.



Hope this helps you with your own analysis.  Good Luck traders

4 comments:

  1. Thanks for the information, is there a good resource/ book to understand cycles?

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  2. Check Amazon for books. JM Hurst has a couple of books that are at an understandable level. But, there are other authors/books available from Amazon.

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  3. Another author is David Knox Barker. Google him for online articles to get a preview of his books on cycles.

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