Cyclic Analysis: A Dynamic Approach to Technical Analysis

by J.M. Hurst

The advent of accurate and continuous equity price histories made possible the study of equity price movement as a function of time, independent of all other variables. Early studies of such data produced the conclusion that equity prices vary in a random, hence unpredictable, way. This conclusion has been replaced in the last decade as evidence mounts that equity price variation is ordered and quasi-predictable. The relationship between past and future prices is found to be complex and nonlinear. Current simplified models represent price movement as consisting of a linear combination of wave functions with specific and consistent interrelationships. This viewpoint has led to the development of the Wave Theory of Price Action. From this Wave Theory, a body of practical application methods called Cyclic Analysis has been evolved which permits a fully integrated and wholly technical approach to the problem of trading and investing successfully in the stock and commodity markets. This approach features the following unique prediction of price-reversal timing, prediction of the price at an anticipated reversal, estimation of the extent of the price move expected to follow a reversal, and evaluation of a transaction before entry in terms of risk and profit potential. Cyclic Analysis methodology has been field tested since 1971, and computerized analysis aids are available.

48 pages, Paperback

First published November 1, 1999

Reviews

[Greg · Rating 3 out of 5]

Kind of short and you'll need to dive in to his other book to get to any real understanding of his ideas.