Cycle Analysis: A comparison of the Fourier and Maximum Entropy methods by John F. Ehler
The motivation for reducing price history to a mathematical expression is clear. If we can describe the
prices mathematically, we have the means to extend the equation into the future to predict what the prices
will be. Cycle analysis is particularly attractive because, if a simple cycle is present and will extend into
the future, all we have to do is to wait until the prices reach a valley to buy and then wait again for the
price to reach the crest of a cycle before we sell.