yahoogle
Jan 04, 2010, 03:58 AM
Cycles have been remarkably accurate over the last month and a half. All of the listed turn dates were given in advance in the Market Outlook forum (except the Nov 27 date, which was given in the chatroom before Thanksgiving). The Dec 21 turn came 1 TD (trading day) early, and we pointed out the potential reversal pattern that occurred on Dec 18. The Dec 2 turn was likely to be late, and we warned about that ahead of time. Dec 3 also turned out to be a significant high for gold.
Daily cycles actually tend to work better in a non-trending market (when the trend is weak). When the market is in a stronger trend, then weekly cycles are more important, and the meaningful turns are farther apart.
Many people misuse cycles by trying to apply them at the expense of other technical factors. They have to be used together with Elliott Wave counts, major support/resistance and target levels, as well as technical indicator readings such as overbought/oversold and positive/negative divergences. Failure to incorporate these technical considerations is not advisable. I've known people who tried to rely on cycles alone, and that tends to backfire very often.
On the other hand, using all the analysis we provide together can yield great results, enabling the trader to enter winning trades with conviction.
The next focal point coming up next is [reserved for members].
Just keep in mind that these dates will have to line up with further technical analysis if they are to work reliably.
Daily cycles actually tend to work better in a non-trending market (when the trend is weak). When the market is in a stronger trend, then weekly cycles are more important, and the meaningful turns are farther apart.
Many people misuse cycles by trying to apply them at the expense of other technical factors. They have to be used together with Elliott Wave counts, major support/resistance and target levels, as well as technical indicator readings such as overbought/oversold and positive/negative divergences. Failure to incorporate these technical considerations is not advisable. I've known people who tried to rely on cycles alone, and that tends to backfire very often.
On the other hand, using all the analysis we provide together can yield great results, enabling the trader to enter winning trades with conviction.
The next focal point coming up next is [reserved for members].
Just keep in mind that these dates will have to line up with further technical analysis if they are to work reliably.