The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Cycle Analysis

There are five basic methods for identifying cycles in the market, namely via:

1. Visual inspection: The easiest way to identify price cycles is via visual inspec-
   tion. Unfortunately, this requires some experience and familiarity with the
   markets. In Figure 20.18, we see longer‐ and shorter‐term cycle troughs on
   the daily chart of 3M Co. These can be easily identified visually with some
   experience.

figurE 20.17 Tuning the Percentage Bands to the Dominant Cycle on the Daily

Chart of GBPUSD.

Source: MetaTrader 4

figurE 20.18 Identifying Cycles Visually on the Daily Chart of 3M Co.

Courtesy of Stockcharts.com