Distinguishing Bullish Cyclical Patterns from Bearish Patterns

admin — Sun, 28 Jun 2009 20:07:30 +0000

The 56-day cycle was actually a bullish market cycle. I one thing, its second segment, or leg, B, carried above the level of the first leg, A. I another, the total length of the rising phase of the swing, seven weeks from m October to early December, occupied seven weeks of the 11-week cycle, clearly m than 50% of the total cyclical period. Neutral cycles generally involve rising a falling periods of equal length. Bearish cycles usually involve more of the cy being down than up in price movement.
However, by December 2, cyclical forces were beginning to line up on the be ish side. For one thing, the 56-day cycle had already been rising for seven wee for nearly two-thirds of its nominal cycle length. By December 9, Segment B v running out of time and moving into its second half, confirming in its own increasing weakness the building weakness of the entire 56-day cycle. The final 15-day period of Segment B could be divided into two smaller segments yet: eight days and seven days. Declines at the very end of December were supported by a confluence of declining short- and medium-term cycles. This confluence resulted in a fairly serious market correction during the final four weeks of the larger 56-day cycle.

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Distinguishing Bullish Cyclical Patterns from Bearish Patterns