Cable Price and Time cycle Accuracy
I have not been here for a while; however, I thought I would share this idea with everyone else.
This $USD denominated $Cable chart is a great example of symmetry between Pythagorian Cycle, Fibonacci and Elliotwave. Here we can clearly see how Price and Time are connected together. If we take a closer look in the overlapping Circles through the price bars, it becomes quite clear, how price movements come to a halt and change the direction based on Supports or Resistances.
The 45° Triangle suggests the begining and the end of the 120 week Time Cycle; while 47.93° Triangle contains the price within strict resistance of 82 week Time Cycle. This time Cycle also falls into an Elliot Wave corrective Diagonal Triangle ABCDE where price completes the triangle into E, ending the 82 week cycle in order to begin an upward thrust. The thrust would most likely to end within the 120 week Time Cycle and dissipate its momentum in order to enter into the next Price and Time Symmetry.
"Space and Time are connected by numbers."--Pythagoras
By using this analogy, we can clearly observe how market price moves in symmetry with time repeating self-similar attributes in a system of chaos.
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Comment by talisman on October 4, 2012 at 1:26am
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this is an interesting subject. i have to wonder if you arent maybe connecting dots that appear to be connected but it is really just a random coincidence. certainly food for thought at an academic level, and fun to discuss, but how would you use this information to form actual trading ideas?
good article for sure, definitely need an open mind for the concept
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Comment by fx-Syndicate on October 4, 2012 at 2:55am -
Hi talisman,
Thanks for your interest on the subject. Well, market always seems like random; but it's nothing but a Fractal that functions in self-similar repetitions. Human eyes are not sophisticated enough to identify self-similarities within Price and Time with accuracy. However, there are many methods already being developed based on Fibonacci, Fractals and Numerology in order to recognize this symmetry.
So, to answer your question, this analysis is no coincidence. If you are familiar with Elliot Wave analysis, you may already know what's happening within the Diagonal Triangle based on fibonacci sequence. Then by identifying the center point C of the Diagonal, it is possible to recognize cycles if we draw them from Swing highs and lows. Then draw a 90° line from C and connect them with the beginning and the center of the cycle. The angles and the time (here as weeks) will tell you what are the time cycles on the right side from the center of the triangle. The cycles also confirms Gann ratios. There are also ways to determine fib ratios by using 45° angle and recognize turning points, like sin(45°)=0.7072 a fib ratio, but it is beyond the scope of this discussion.
Anyway, the method can not be used same way for impulsive wave patterns. As market pattern changes, the angles may change in order to recognize cycles. Here is an example that you might find interesting--
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