Wave Analysis Functions
by John Sweeney
C.E.R. Institute, Inc.
P.O. Box 9157
Scottsdale, AZ 85252
Service: Program to calculate "potential market reversal days" and Fibonacci retracement levels.
Requires: IBM PC/XT/AT or compatible with printer
If you believe that historical data contain repetitive cycles that extend into the future and want to bet
money on it, there's one program that is the compendium of calculations for the dates on which you will
trade. Wave Analysis Functions (WAF) will calculate and list every conceivably related data for cycles
up to 50 Fibonacci retracement levels (to the eighth decimal point) and, ultimately, critical trade dates.
Getting this done is relatively painless. The program comes with data for the Dow Jones Industrial
Average (DJIA) from March 25, 1898, bonds from December 15,1977, and gold from February 21,1980,
and more recent data for Eurodollars, Swiss francs and soybeans. You supply the turning point from
which you wish the projections made—and a certain amount of judgment to evaluate skew in the time
periods, cyclical factors and evaluations of other indicators. The results are not graphic but tabular and
only one of many tables have been shown in Figure 1. As you can see, the multitude of ratios generates a
true plethora of critical dates¾and this is just from the Fibonacci and wave projection sections. Wave
Functions also produces a critical trade date report, future time periods report, elapsed time periods
report, a calendar, and a report on elapsed DJIA trade dates.