Profiting From Monthly Trading Cycles by Domenico D’Errico
Price movement in stocks comes in waves, and within waves are more cyclical waves. What’s the best way to analyze them? Here’s a look at using a scientific approach to measure cycles.
The concept of a repetitive sequence of events in a process that plays out over time is common in nature and can affect any aspect of human life. You find it in agricultural cycles, astronomical, business, climate, economic, electromagnetic, music, social, just about anything. Any science discipline has its own cycles, and analyzing them can help to understand how things work.
In this article I will focus on stock price cycles using a scientific approach. I will start with some observations, then come up with some possible theoretical explanations, then perform some experiments to validate them ...