Replies to post #47320 on Short Term Trading Member Forum

[pmiles]

Natural Frequency Cycle an Resonance Cycle

Okay let me try and sum this up.

firstly definitions;
"natural frequency cycle": this is the cycle which is natural or innate to whatever is being studies, in this case any financial market.

"event": any external factor which acts upon the market in question sufficiently to cause a low or high which is not in accordance with the "natural frequency cycle".

"resonance cycle": a cycle which is caused by an event. It will be the same as the frequency cycle in that it will have the same periodicity but it will be initiated by the energy of an event and begin with a cycle high or low which is not in accordance with the "natural frequency cycle". Since it was generated by a the finite force of a single event it will not endure and will dissipate as the energy of the events is used.

so when we see a high/low, created by an event which is out of sequence with the cycle we are watching we can assume that a second adjacent cycle of a temporary nature has been initiated. We should expect to see this cycle and all smaller dimensional cycles to run concurrently with the natural frequency cycle we had been watching.

using this knowledge we are able to clear up any "murkyness" in our cycle analysis. Whereas before the event would have made the market obscure and untradeable we can now trade it by making sure that we track both the both that natural frequency and resonance cycles.

Comments.