Natural Cycles

 

Pure Natural cycles

Patterned cycles

Technique

 

Pure Natural cycles

Natural cycles are cycles based on natural phenomena. These are samples of natural cycles:

- Annual cycle shows the price within a year, this is one year wave:

 

- Monthly cycle shows the price within a month, this is one month wave:

- Weekly cycle shows the price within a week, this is one week wave:

 

- Diurnal cycle shows the price within a day, this is one day wave:


Patterned cycles

We can combine natural cycles in many ways. It gives us a whole lot of other cycles. Let's discuss patterned cycles. They are still based on the natural cycles, though they are artificial themselves. As an example of a patterned cycle consider Decennial Annual cycle. To calculate the Decennial Annual for the year 2009, we use NOT ALL available price history, but the years that have the same Decennial Pattern, i.e. 1999, 1989, 1979 ... All other years are excluded. In other words, this cycle shows us how the Annual cycle has worked 10, 20 ... years ago.

Another example of a patterned cycle is Diurnal Weekly cycle. If regular Diurnal cycle shows us the typical price movement within a day, the Diurnal Weekly cycle shows the typical daily price movement at the SAME day of the week. Thus, if we do the Diurnal Weekly cycle for Thursday, it will show the typical daily movement on Thursdays only, all other days of the week are not taken into account.


Technique

All these cycles are available in Timing Solution software. When you download the price history, the program automatically calculates these cycles for the downloaded financial instrument.

You can make these cycles visible setting this option ON:

 

The program will display these cycles in the Main Screen:

 

In real time regime these cycles are updated automatically.

Click this button   to set the parameters of Natural Cycles:

Here you can choose the cycles to display in the Main Screen.

Annual - this is a classical Annual cycle.

Fast Annual - this is a variation of the Annual cycle; this Annual cycle shows the most typical Annual price movement that took place for the last three years ONLY. It shows the latest tendency in Annual cycle while the classical Annual cycle analyzes all available price history.

Varying this parameter:

you can change the "memory" of the fast line, i.e. how many recent years are used to calculate this line/cycle.

Annual - Decennial (patterned) shows Annual-Decennial cycle.

Try to vary the pattern parameter:

You will be able to display more advanced patterns. Say if you set this option to 7, you will analyze Annual patterns that took place 7, 14, 21 ... years ago. For the year 2009, the program will analyze Annual movement in 2002, 1995, 1988 ...

Weekly - this is a weekly cycle.

Weekly - Month - this is another variation of a patterned cycle. It shows the weekly price movement in the SAME month of year. Say to calculate weekly-month cycle starting from today, June 18, 2009, the program analyzes weekly movements in June 2008, June 2007 etc. In other words, it calculates June weekly pattern.

Monthly - monthly cycle

If the downloaded price history is intraday, you may get another set of Natural Cycles:

Diurnal - Diurnal cycle

Fast Diurnal - to calculate this cycle last 3 days are used. In other words this cycle shows the daily price movement that is most typical for the last three days. You can vary the amount of days.

Diurnal + Day of Week - explained above

 

Remember, this module allows to display any cycle, not Diurnal cycle only. For example you can set the length of this cycle to 57 price bars. You get the 57-bars cycle:

The program  immediately recalculates this cycle.

Also it reminds you the length of corresponding Diurnal cycle here:

 

The Harmonic option allows to display more/less detailed projection lines: