Esoteric Cycles
I have tested this with 50 years of data on many indexes and have never seen an incomplete cycle. The above cycle is basically neutral it is neither oscillating up or down but moving sideways. In a Bull Market the cycles oscillate upwards and in a Bear Market they oscillate downwards. Markets that are at a critical juncture usually oscillate sideways, trying to determine where they will head next. It is at this point in time that spectacular up or down moves can be caught and huge profits can be made. Now here is the interesting part not only do you need to visualize the cycle, you then need to determine if the cycles are oscillating up or down, if they are oscillating down, then you will make more money just waiting for the cycles to give you a sell signal and short, this is done when the cycle peaks. You are still going to get up and down movements as it heads down, nothing just drops non stop to the bottom. One can still make money going long even though these cycles are oscillating downwards. Just like one can still making money going short while the cycles are oscillating upwards I believe if you can master Hurst's cycles you will come one step closer to understanding esoteric cycles. If you did not understand a word I said above don't worry about it. There are many tools out there that can still help you.
Just remember esoteric cycles are more of an art than a exact science, usually
people with great visualization skills are able to learn this technique very
fast. However its one of those fields where you either get it or you don't.
There is no in between. |
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