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E 'with great pleasure that I am going to write this series of articles on'
cyclical analysis, a method of interpreting the markets that fascinates me and for many years now guide me in my choices of trading. To talk about cyclical analysis must start from the element base, the essence of this technique, ie cycle.
Our life is marked by cycles , it is itself a cycle characterized by a duration
and a physical ability and mental that draw a parabola from birth to death. The history of our planet is made up of cycles
, just think of the succession of eras, in which to determine the course of environmental conditions and temperature variations. I lunar cycles were the basis of many human activities and natural reference for measuring the passage of time.
Another example is the calendar year , a cycle of 365 days generated by the rotation of the earth around the sun, which is repeated "almost" constant over time: the inside can be divided into 4 cycles identified by seasons, each season can be divided in the months that make up the months into weeks, weeks into days, punctuated in turn by the light-dark cycle.
It 'clear that the element base in a cyclical phenomenon is the time , which measures the time period cycle examined: the period of the calendar year cycle is 365 days, during the passage of this time, however, may vary study of one or more quantities , defining the entity, ie the amplitude
in each unit of time. In this example, you could measure the number of hours of light per unit of time equivalent per day, throughout the calendar year. well remember these three words: Time Period and Amplitude
. Three basic concepts for the ' cyclical analysis. The application of the concept of the cyclical nature of financial markets
started formally with who identified a cyclicity inherent in the course of stock prices and developed a mathematical technique
to study these cycles. In fact in the great vastness and complexity of its methods, already used the concept of cyclical vibration inherent in every system, widening from physics and mechanics to financial markets: each index, action, has a future its rate of price change over time, as determined by their characteristics that the great traders more often tied to astronomical cycles. The image of a market that "breathes" with a certain pattern
his typical with the inspiration that drives up the price and creates the highest part of the cycle and then exhale creating the downward part to my opinion makes it clear that there is a cyclical : investigate the causes of the cyclical nature would be extremely complex and would take us on roads marked by personal opinions refuted. What interests us is the analysis of this phenomenon
although it is undeniable that would identify the causes a major advantage in the application of the method. Until next Albymar - Employee of the Forum of CIS Finance Related posts:
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