
Cycle Theory Every markets move in
cycles. They fluctuate according to time cycles and price cycles. Understanding the driving forces
behind the financial markets, you can predict the time to buy and the time to
sell. Cycle analysis is the technique to project future
market reversal dates. There are eight major types of Cycles: 1.
Gann
Cycle; 2.
Fibonacci
Cycle; 3.
Lucas
Cycle; 4.
Spiral
Calendar; 5.
Square
Cycle; 6.
Cubic
Cycle; 7.
Cycle
of Seven; and 8.
Cycle
of Nine. Gann Cycle projects future market reversal dates in
terms of divisions of 360 by 2, 3, 4 and 8 as well as their multiples. The
cycle includes 30, 45, 60, 90, 120, 135, 180, 270, 360 etc. Fibonacci Cycle projects future market reversal
dates in terms of fibonacci number series.
Fibonacci number refers to 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233,
377 and etc. In the series, the Fibonacci number is the sum of earlier two
numbers. The series begin with 1 and 1. Lucas Cycle projects future market reversal dates in
terms of Lucas number series. Lucas number refers to 1, 3, 4, 7, 11, 18, 29,
47, 76 and etc. In the series, the Lucas number is the sum of earlier two
numbers. The series begin with 1 and 3. Spiral Calendar projects future market reversal
dates in terms of the square root of Fibonacci number series times the moon
cycle (29.52 days). Spiral Calendar number series refer to 15, 20, 28, 38,
52, 71, 96, 130, 175, 234, 313, 418 and etc. The cycle is based on calendar
day instead of trading day. Besides, Gann also used square cycle, which includes
1, 4, 9, 16, 25, 36, 49, 64, 81, 100, 121, 144, 169, 196, 225, 256, 289, 324
and etc. To market geometricians, cubic cycle is an important
to for long term market project. Cubic cycle includes 1, 8, 27, 64, 125,
216, 343, 512, 729 and etc. Cycle of Seven and Cycle of Nine are also important
tools of W.D. Gann to count market rhythms in terms of multiple of seven and
nine. 


