Goldtent TA Paradise

SPX CYCLE CHART

1. Fullgoldcrown says:

   August 18, 2016 - 10:33 pm at 10:33 pm

   Nobody asked me but this sine wave thing looks pretty good for trading Tommy

   Have you traded with it ?

   • Tommy says:

     August 18, 2016 - 10:48 pm at 10:48 pm

     I don’t use it for trading per se, but have found it can closely match a fast stochastic that I use everyday that catches tops and bottoms very well.

     It basically coincides with a trend line touch, double tops, head and shoulders, ect, many times, so that you can anticipate when that will happen in advance and be ready to trade it.

     Kind of like a “time” visual aid.

2. Surf City says:

   August 18, 2016 - 10:37 pm at 10:37 pm

   Hi Tommy, The stock charts Cycle wave is useful to show how cycles work but the problem is that it needs to be uniform when Cycles actually vary in length. Most assets have an average range of 5-6 months but they can be longer or shorter. When this happens, the Sine Wave or Cycle Tool does not have the ability to adjust.

   • Tommy says:

     August 18, 2016 - 11:01 pm at 11:01 pm

     Have only been using it recently Surf, but have found that if you use the recent tops and bottoms, the subsequent cycles seem to match up fairly close.

     In other words, it works until it doesn’t. Seems to match up with what you’re doing, at least with the dollar being on a 3 year cycle, right?

     Like you said, its more a time indicator rather than a price indicator.

     • Surf City says:

       August 19, 2016 - 12:27 am at 12:27 am

       Tommy, If it works for you great. What I have found in the longer 5-6 month Intermediate Cycle is that a Bullish will trend to top at 3+ to 4 months and then move into its low for 1+ to 2 months. This is called a “Right Translated” Cycle as Price spends more Time going up than it does going down. In Bearish phases, the 5-6 month IC is “Left Translated” as Price goes up for 1+ to 2 months and down for 3-4 months.

       Study the Gold chart from 2013 until now and you can see this very clearly. Almost every Gold Cycle from 2013 until early 2016 had an uptrend for 2 months or so and a down trend for 3+ months. In Jan 2016 this pattern changed as the Gold and Miners cycle did not top until 3+ to almost 4 months and went down for 1 month into its IC Low in late May.

       If you use the sine wave tool over this long period of time starting at an IC Low you will find that the Lows line up fairly closely but the Highs do not because of this basic Cycle pattern that changes when an asset shifts from Bear to Bull. Also the Longer Cycles dominate the shorter ones so you will see this pattern repeat on shorter timescales depending on what phase the Longer Cycle is in (i.e. Bull or Bear). Hope this helps.