Analysis and Trading based on Envelopes, Waves, Cycles
- #2,202
- Edited 8:42am Jul 22, 2019 4:49am | Edited 8:42am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
This Chart shows a Cycle Composite.
This Chart is important because it shows the sum of Cycles . This Chart is largely used by Cycles specialist to explain the Principle of Summation and incidentally the Principle of Synchronicity ( Cycles Lows of various period are presumed generated their Low at the same time (or very close of it))
It is a good chart to UNDERSTAND the Summation of Cycles
But a lot of things are rarely explained by (lazy) Cycles Specialists
First : Price Action is in Range - Underlying Trend is Flat / Neutral
What if Underlying Trend is UP or DOWN ?
Second : Cycle Amplitude is the Same for the 3 Cycles (Yellow, Red and Blue) which , in this example build the Composite Cycle (Green)
According to Hurst (and others) Cycle Amplitude is proportional to the Period . That is the ¨Principle of Proportionality.
Notice that in the real life the Principle of Proportionality does not mean that if Cycle 1 has an Amplitude of 1 Price Unit and a Period of 1 Time Unit, if Cycle 2 has a Period of 2 Time, Units , it does not necessarily mean that Cycle 2 has an Amplitude of 2 Price Units
This Chart is important because it shows the sum of Cycles . This Chart is largely used by Cycles specialist to explain the Principle of Summation and incidentally the Principle of Synchronicity ( Cycles Lows of various period are presumed generated their Low at the same time (or very close of it))
It is a good chart to UNDERSTAND the Summation of Cycles
But a lot of things are rarely explained by (lazy) Cycles Specialists
First : Price Action is in Range - Underlying Trend is Flat / Neutral
What if Underlying Trend is UP or DOWN ?
Second : Cycle Amplitude is the Same for the 3 Cycles (Yellow, Red and Blue) which , in this example build the Composite Cycle (Green)
According to Hurst (and others) Cycle Amplitude is proportional to the Period . That is the ¨Principle of Proportionality.
Notice that in the real life the Principle of Proportionality does not mean that if Cycle 1 has an Amplitude of 1 Price Unit and a Period of 1 Time Unit, if Cycle 2 has a Period of 2 Time, Units , it does not necessarily mean that Cycle 2 has an Amplitude of 2 Price Units
- #2,213
- Edited 4:12am Jul 31, 2019 4:00am | Edited 4:12am
- Joined Oct 2017 | Status: Trader | 12,472 Posts
