THE HAnDbook of TECHniCAl AnAlysisIt is important to locate some bearish formation or resistance at cycle
peaks to ensure greater signal reliability. In Figure 20.19, we see a bearish
convergence consisting of a channel top resistance occurring at a projected
cycle peak, at Point X.
In Figure 20.20, we see a bearish convergence consisting of an uptrend
line resistance occurring at a projected cycle peak, at the far right‐hand side
of the chart.
In Figure 20.21, we see a bearish convergence consisting of a channel re-
sistance occurring at a projected cycle peak, at Point X on the daily chart of
the AUDUSD.- Centered moving average: Centered moving averages are moving averag-
es that are back shifted by one half of the cycle period. A centered moving
figurE 20.19 Identifying Cycles Visually on the Daily Chart of 10‐Year U.S. Treasury
Notes Price.
Courtesy of Stockcharts.com
figurE 20.20 Identifying Cycles Visually on the Daily Chart of PowerShares DB U.S.
Dollar Index Bullish Fund.
Courtesy of Stockcharts.com