Short Term Trading Member Forum

[pmiles]

Cycle Inversion.

I remember years ago there was some discussion related to this and at the time I think the consensus was that there's no such thing.

However I am more and more inclined to believe that there is and that when it happens it indicates a tipping point.

But let's suppose that a where we expect a 20 week cycle low we actually get a new cycle high. Now over the years I've noticed that when this happens it usually means that the cycle one dimension larger (in this case the 40 week) has peaked.

This would seem to make sense. If a cycle high is right translated it means the sum of the larger cycles is "up". If it is left translated then "down". So if it comes at the exact midpoint then it would seem reasonable to assume that the sum of the larger cycles is neutral i.e. at a tipping point.

So I believe that a cycle inversion (a new high when there should be a low) means that the next larger cycle has peaked and that the cycles above that have "tipped".

Comments welcome.