In this example I chose the 8/30/05 high as the first anchor point on
the chart and then chose the 1/23/06 high as the second point. The program
measures the distance in time between the two points chosen, which
in this case was 98 trading days. The 98 days is then multiplied by the
appropriate ratios and projected forward in time. On this chart, you can
see some turning points or changes in trend, typically within one trading
day of the projected cycles. The March 16 (.382), April 20 (.618), May 12
(.786), and June 13 (1.0) cycles produced a tradable change in trend. The
actual dates of the highs or lows were March 16, April 21, May 11, and June
14. Typically we want to watch a time cycle projection plus or minus one
day for a possible change in trend. Note that the other cycles illustrated in
this chart did not produce any meaningful change at all.