Cycles are Perfect - but misunderstood The concept of Market Cycles evoke strong feelings from anyone who has tried to deal with them. Some people swear by them but most swear at them. Their notorious reputation comes from what WE expect them to accomplish for us. The word Cycle comes from the Greek "Cyklos" which means circle or ring. It represents a time period and time only. However long it takes to complete whatever it is manifesting is the Length. Several repetitions is the Rhythm or Frequency. The extremes it measures is the Amplitude. The relationship or starting point of this cycle to another is the Phase. Cycles are Natures way of doing business. Everything in our universe vibrates. Our senses and sensitive electronics pick up these oscillations. This spirit energy combines with other cycles to form all that we know. Therefore everything is the same but of different scale or octaves. Cycles are perfect...almost. There is just enough of a deviation to cause change. If not, there would be no growth or evolution and devolution. The causal element of cycles is not being discussed here. That's like talking about religion or politics. What is important is their effect on us whether assumed or real. Market cycles found on charts are first sensed or felt then identified and quantified. A big problem is that they do not repeat every time to the Nth decimal point, nor do they turn on a dime. A day is a day but how many are exactly 24 hours long sunrise to sunrise. Night does not turn into day in a second nor does Spring immediately become Summer on June 21st. All markets are the sum total of the different groups of people attuned to different cycles and should be analyzed as to their various contributions. The same natural laws of attraction and repulsion cause us to act with compulsion to trade the way we do as individuals and yet leave our mark on a chart as part of some group. Just like trying to judge a book by its cover will not help identify the finer details inside, neither will analyzing a chart in its totality offer any insights relating to specific internal future moments. When looking at any chart (stock, commodity etc.), the data available determines the largest cycle either by appearance or its effect. One consolation we get from Nature, is that the bigger cycles will tell you where the smaller ones must go and the smaller ones will tell you where the larger ones are going. We live in a multi-dimensional world. Our perspective of the cycle or actually the effect it has on us is not flat. Imagine a spinning bicycle wheel going around and around. Walking in front of the wheel has not changed the time required to make one revolution. Our view of it has changed, so now it appears to go up and down. The same holds true for the effect it might have on us. Tilting the wheel or viewing from a different an angle can produce still other results. The data which makes up our cyclic composite on charts or screens should be analyzed carefully. By the time we see it, its' purity has already been tampered with through vendors, broadcasters, price reporters and other human conditions. How accurate is measuring the depth of bath water while standing in the bathtub? Exotic filtering and over manipulating the data removes and distorts the essence of what we're looking for in the first place. The love-hate relationship we have with cycles is based on our assumptions. As convenient as we would like them to be, our expectations are unrealistic. We ask too much of them while at the same time ignore some of their more basic qualities. What we believe is not the same as what we know. Nature and her cycles have done quite well so far. Enter the human condition and analysis of the influence on people being done with dollar oriented motivations, the correct solution becomes difficult. It seems ironic that the same understanding and respect mankind has shown for Nature shows up in the markets when people are quick to blame their losses on those damn cycles that don't work right. MarkeTree... 9/94