“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

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Friday, 1 March 2013

Cycle vs Weekly Indicator

I have composed what I think is the best indicator to find a top or bottom to confirm what is already obvious, but one can never be to sure about any surprises.

The following Weekly Stochastics is not to scale with the Cycle Timer chart.  I just cut and paste the Stochastics above so don't be alarmed if they don't match up vertically.

If you notice during the turn dates in Jan 2012, Apr 2012, Aug 2012, Oct 2012 and Jan 2013 they were all within the process of a trend, but if we were to use the Weekly Stochastics to figure out at which general direction we are going, then our analysis becomes very convincing and very sure.  As for tops and bottoms, one can never be sure if it is a top or bottom, but cycle students usually will have a gut feeling as to a top or bottom.  This system of analysis just confirms the belief.

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