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 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 a 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 the money is made by spotting a sell signal and shorting the markets; a sell signal is usually issued at the peak of the cycle.  A sell signal does not mean that the markets are going to noise dive; you are still going to get up and down movements; 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, but the risk associated with these trades will be higher as one will be in essence betting against the current cycle.

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 you can master and use to your advantage. Esoteric cycles is one of our proprietary tools and has been very useful in identifying market tops and bottoms. However one should not confuse this with market timing that tries to predict the exact top or bottom; those that try to predict exact tops and bottoms are usually left with an empty can.


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.