Cycles, 01/28/07
Thoughts:
Cycles are easier when accompanied by drift because then only the troughs matter.
When only the troughs matter, there's enough time too look back and identify the peaks.
A simple trading system can be used to verify a cycle, then R for deeper analysis.Cycle entries:if it has been cycle period / 2 bars since the recent cycle peak, or
if the cycle is at its lowest point in 1.5 cycle period bars since the recent trough
Cycle Exits:when it has been cycle period / 2 bars since entry