May 28, 2018 weekly outlook

Nested envelopes indicate top formed ....  Sell?

Meta Sine wave turned down and should bottom within 5-6 trading days.  Past week with short cycle down and longer cycles up gave a sideways move.  The week was sideways.  So far 2018 has been sideways.

 

May 14, 2018 weekly outlook

 

 

Hurst cycles

Shorter cycles  keep whipsawing up and down. Expect a short term top during the last half of the week.

 

Nested envelopes for cycles

Most of my posts use semi-circles to show cycles.  On April 1 I showed you the use of  "sine" waves as an alternative way to show cycles. 

Bit, there are other ways to visualize cycles.  Lots of people like Moving Averages (MAs) to analyze price movement.  We can use envelopes (based off MA offset above and below MA).  Time shifting 1/2 the  cycle span  centers the envelope.  To extract maximum information we nest cycle envelopes.

Here is an example - Russell 2000 Index:

Note  difference in MA lengths  (20 and 40 days), time shifted (10 and 20 days)  (2.5 and 3 deviations from MAs which are not shown)

Good Luck traders