It's all about cycles
|
|
This book is about cycles. Cycles that influence our life here on Earth. Cycles that represent energy flows that influence people’s moods and emotions. Cycles that represent energies originating from outer space. Cycles that manifest themselves in the measurable value of the stock market.
I want to introduce an approach on how to identify relevant cycles and how to use this information for trading. This approach is not entirely new. But the way I use the “cyclic approach” is. Moreover, I throw a few of the universe’s energy cycles into the mix. This combination is truly unique in that all details are explained and that this approach is deciphered into a complete trading approach.
Cycles are important.
Cycles surround us and influence our daily lives. Many events are cyclical in motion. There is the ebb and the flow of waves and the inhaling and exhaling of humans.
Our daily work schedule is determined by the day and night cycles that come with the rotation of the Earth around its own axis. The orbit of the Moon around the Earth causes the tides of the oceans. Cycles also have an impact on women from their teenage years on – the menstruation cycle.
Gardeners have long understood the advantages of working with cycles to ensure successful germination of seeds and high-quality harvest. They work in harmony with the cycles to attain the best results, the best crops.
We experience four seasons every year, namely the changes in climate, resulting from the rotation of the Earth around the Sun. This seasonal cycle creates the changes in conditions that affect all living beings on Earth. One common cycle based on seasonal conditions is the bird migration, a regular seasonal journey undertaken by many species of birds.
You would wait until early spring to plant new seeds to take advantage of the rise in pulsing energy of the warming spring temperatures. Knowing when the sun will rise may not seem like a prediction, because we associate prediction with uncertainty and risk, but it is, nonetheless, a prediction of future events that is highly accurate.
These cycles are largely based on the cyclical movements of the Sun and Moon.
However, there is strong evidence that other additional energy cycles in the universe influence our life here on Earth. Independent research by the University of California and the University of Kansas has revealed that the rise and fall of species on Earth seems to be driven by the motions of our solar system as it travels through the Milky Way. Some scientists believe that this cosmic force may provide the answer to some of the biggest questions about Earth’s biological history (Schwarzschild, 2007). Finally, cycles have a long history in explaining our behavior on Earth. We can go back a long time in history to recognize that life follows a path of time cycles. We can even find reference to this in the Bible.
|
c A Time for Everything d There is a time for everything, a time to be born and a time to die, a time to kill and a time to heal, a time to weep and a time to laugh, a time to scatter stones and a time to gather them, a time to search and a time to give up, a time to tear and a time to mend, a time to love and a time to hate, Ecclesiastes 3:1-8
|
If there is indeed a time for everything that explains and predicts our behavior, this must also be applicable to people’s economic hopes, which manifest themselves in the value of the stock market.
Two well-known pioneers who applied cyclic analysis in the stock market are W.D. Gann and J.M. Hurst. Gann used cyclic and geometric time and price patterns, but did not elaborate the details of his approach. His work is still a mystery to many of us.