Telling my 8 years of experience in 5 min. A thread on how to forecast market by time cycles.
Time is the most important factor in determining market movements and by studying the past record of an average or individual stock, you will be able to prove to yourself that history repeats itself and knowing the past can tell you the future.
By studying the past we can find out which cycles are repeated in the future.
To be accurate in predicting the future, you must know the major cycles. The most money is made when there are sharp movements and extreme volatility at the end of major cycles.
The following cycles are the most reliable to use:-
1⃣10-YEAR CYCLES
The important cycle for forecasting is the cycle of around 10 years. There are fluctuations of almost the same nature which generate extremely high or low every 10 years.
The 10-year cycle equals 120 months. We divide this just the same as we divide the range between bottoms and tops to get Resistance Levels. One-half of the cycle would be 5 years or 60 months. One-fourth would be 24 years or 30 months.
One-eighth would be 15 months and one-sixteenth 74 months. One-third would be 40 months and two-thirds of the cycle would be 80 months. All of these time periods are important to watch for changes in trend.
2⃣7-YEAR CYCLE
This cycle is 84 months. You should watch 7 years from any important top or bottom and 42 months or one-half of this cycle. You will find many results around the 42nd to 44th months. 21 months is one-fourth of 84 months, this is also important.
You will find many bottoms and tops 21 to 23 months apart. At times prices make bottoms or tops 10 to 11 months from a previous top or bottom. This is due to the fact that this period is one-eighth of the 7-year cycle.
3⃣5-YEAR CYCLE
This cycle is very important because it is one-half of the 10-year cycle and the smallest complete cycle that the market works out.
4⃣MINOR CYCLES
The minor cycles are 3 years and 2 years. The smallest cycle is one year, which often shows a change in trend in the 10th or 11th month.
Rules for future cycles:-
Prices move in 10-year cycles, which are worked out in 5-year cycles--a 5
year cycle up and a 5-year cycle down. Begin with extreme tops and extreme bottoms to figure all cycles, either major or minor.
1⃣ - A bull campaign generally runs 5 years - 2 years up, 1 year down, and 2
years up, completing a 5-year cycle. The end of a 5-year campaign comes in the 59th or 60th month. Always watch for the change in the 59th month.
2⃣- A bear cycle often runs 5 years down the first move 2 years down, then 1 year up, and 2 years down,completing the 5-year downswing.
3⃣- Bull or bear campaigns seldom run more than 3 to 3.5years up or down without a move of 3 to 6 months or one year in the opposite direction. Many campaigns end in the 23rd month, not running out the full 2 years.
Watch the weekly and monthly charts to determine whether the end will occur in the 23rd, 24th, 27th or 30th month of the move, or in extreme campaigns in the 34th to 35th or 41st to 42nd month.
4⃣- Adding 10 years to any top, it will give you top of the next 10 year cycle, repeating the same average movement.
5⃣- Adding 10 years to any bottom, it will give you the bottom of the next 10 year cycle, repeating the same kind of a year and about the same average volatility.
6⃣- Bear campaigns often run out in 7-year cycles, or 3 years and 4 years from any complete bottom. From any complete bottom of a cycle, first add 3 years to get the next bottom; then add 4 years to that bottom to get bottom of 7 year cycle.
7⃣ - To any final major or minor top, add 3 years to get the next top; then add 3 years to that top, which will give you the third top; add 4 years to the
third top to get the final top of a 10-year cycle.
Sometimes a change in trend from any top occurs before the end of the regular time period, therefore you should begin to watch the 27th, 34th, and 42nd months for a reversal.
8⃣- Adding 5 years to any top,it will give the next bottom of a 5-year cycle.
Vice versa for the bottom.
Therefore , in this thread, we have tried to understand how to forecast stock market by time cycles.
I hope you all learn something new today. I post such threads every week.
Follow me for regular stock market learning.
Telling my 8 years of experience in 5 min. A thread on how to find out high and lows of stock market.
We have seen two types of solar dates; Static(Stable) and dynamic solar dates. As per gann, the year is supposed to begin with 21st March, not 1st January.
In the calculation of seasonal time periods, we do not start calculating time from Jan 1 but calculate the time periods from the date when the Spring season starts on March 21st.
The next step is to select any major swing high or swing low on the chart from which you draw the Gann fan angle. Once you've selected your swing low point, simply use the Trend Angle tool and draw a 45-degree right angle.
(2/n)
Now in next step, Use the gann fan indicator, which is located on the left side panel of trading view. Simply place the Gann Fan Indicator on the chart. Make sure it overlays on top of the 45-degree line you drew earlier. The (1/1) line must be exactly on the 45 degree line.