Figure 10-3 illustrates time cycles projected from a prior low to low,
also illustrated on the daily continuous crude chart. Here we measured the
cycle from the 5/16/05 low to the 11/30/05 low, which lasted 137 trading
days, and projected the cycles forward from .382 to 1.618. On this chart, we
saw reversals near or on .382 in time, .786 in time, 1.272 in time, and 1.618
in time of this prior low-to-low cycle. A low was made one day after the
.382 cycle, another low was made exactly on the .786 cycle, a high was
made exactly on the 1.272 cycle, and another high was made one day after
the 1.618 cycle. (It looks like we also saw a reversal around the 50 percent
cycle, but it doesn’t look like a clean hit, and I tend to be a perfectionist.
I consider it a hit if it is plus or minus one day from the cycle projection.)
Figure 10-3 illustrates time cycles projected from a prior low to low,also illustrated on the daily continuous crude chart. Here we measured thecycle from the 5/16/05 low to the 11/30/05 low, which lasted 137 tradingdays, and projected the cycles forward from .382 to 1.618. On this chart, wesaw reversals near or on .382 in time, .786 in time, 1.272 in time, and 1.618in time of this prior low-to-low cycle. A low was made one day after the.382 cycle, another low was made exactly on the .786 cycle, a high wasmade exactly on the 1.272 cycle, and another high was made one day afterthe 1.618 cycle. (It looks like we also saw a reversal around the 50 percentcycle, but it doesn’t look like a clean hit, and I tend to be a perfectionist.I consider it a hit if it is plus or minus one day from the cycle projection.)
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