CycleTrends Daily uses Cycles and Technical Analysis to analyze and forecast Financial Markets using end-of-day data. It is an invaluable aid to profitable trading and works equally well with all the different components of the financial markets, including US and international equities and indices, commodities, precious metals, gilts, currencies, funds and futures.
CycleTrends Daily supports End-Of-Day data in the legacy ©MetaStock format or in Sharenet’s DN ASCII (text) format.
Rothschild bankers were the first to use Cycles to trade interest rates in the 1800s. Americans started studying cycles only in the 1900s and established the Foundation for the Study of Cycles. CycleTrends developed from this Foundation.
The basis of the program is that the financial markets move in cycles.
CycleTrends is thus programmed mathematically to find genuine and persistent cycles in the stock market. Because they have repeated themselves in the past, logically they will do so in the future and can therefore be used for forecasting.
Using modern statistical techniques such as Fourier Transforms, trigonometric & Array analysis, CycleTrends searches for cycles within the data stream of the stock under analysis, establishing its strength and reliability, and then projects the cycle into the future, forecasting tops, bottoms and trend reversals.
The CycleTrends Approach
The CycleTrends program differs from traditional wave and Cycle Theories (e.g. Elliot Wave and Gann) because it does not begin with a pre-existing framework into which the data must be squeezed, but rather it begins with the raw data and searches for whatever cycles are actually there.
Using modern statistical techniques such as Fourier transforms, trigonometric regression and array analysis, the program searches for cycles within the data stream, of the stock or financial instrument under analysis, establishing their strength and reliability as a predictive tool.
The mathematics are scary but the results are impressive. On average 20 cycles are isolated and then combined and projected into the future. The program is able to compute the large cycles that forecasts major tops and lows, and the smaller cycles that call the corrections that take place with the major trend.
The SuperScan and WatchList features in CycleTrends will greatly enhance your trading results.
SuperScan and Watchlist
The function of the SuperScan is to scan shares in the database and filter out those that are showing buying or selling opportunities.
This will greatly assist you in narrowing down and finding shares that are showing trading potential.
The enhanced WatchList incorporates the scan signals from the SuperScan. This means you can now see at a glance how the shares you are watching are performing.
The WatchList enables you to make any number of portfolios including shares of your choice. The shares in the WatchList remain in place as the market moves from day to day. The Shares are automatically scanned to show the future direction they are likely to take.
You can open a chart for any share in the SuperScan or the WatchList by simply double-clicking on the share.
CycleTrends uses five specialized indicators for performing the cycle analysis. Cycles-Trig or Cycles-Array, Fourier Trend, Trendic and TrueOBOS. In the two case studies below, Cycles-Trig has been used.
Brief description of the indicators:
Cycles of a specific shape viz. a sinusoidal shape are fitted into past data via trigonometric regression. The best ones are chosen by the program and then projected into the future zone. The purpose is to establish the peaks, low points, and the trend of the stock under analysis.
Overbought or oversold levels are established by measuring the deviation from the Fourier trend (blue line on the graph) in a very special and statistically sound way.
The thin red line and green lines are one MAPD (mean absolute percentage deviation) away from the 0-degree line and the thicker lines 2 MAPD’s away.
If the indicator is below the green lines a potential buy zone is established and above the red lines a potential sell zone.
Trendic is another way of finding cycles, but specifically only harmonic cycles. Trendic is not a forecaster but a confirming indicator, though traders do use it for buying and selling. A positive signal is generated when Trendic moves above 0, and negative when it moves downwards through zero.
In broad general terms these three cycle indicators should confirm turning points in the time series, before an investment decision is made.
Cycles are not relied upon on their own for making trading decisions.
The program has 2 cycle indicators that are used to back up cycle readings.
- TrueOBOS: An overbought / oversold indicator that plots the deviations round the Fourier Trends.
- Trendic: This indicator contains Fourier cycles and is used to trigger buy and sell signals.
CycleTrends also contains Standard Technical Indicators namely:
- Moving Averages
- Bollinger Bands
- Trend Line analysis
- Crosshair cursor
- Candle Stick charts
- Chart Zooming
- Back-Test Feature: Allows the analyst to back track to any data point and research the accuracy of the different indicators at that point
A condensed video demonstration of CycleTrends with these features can be viewed right now.The data comes from the Johannesburg Stock Exchange but applies to any Stock Exchange.
CycleTrends Daily supports (but does not include) locally stored End-of-Day market databases provided by Sharenet and/or in the legacy MetaStock Database format provided by certain data providers worldwide.
DataSharks – Software for traders who want to download free stock quotes from Yahoo, Futuresource.com, and BriteFutures.com.
Eoddata – Free end of day stock market data and historical quotes for many of the world’s top exchanges including NASDAQ, NYSE, AMEX, TSX, OTCBB, FTSE, SGX, HKEX, and FOREX.
Premium Data – Stock, Futures and FOREX End of Day Data in MetaStock Data and ASCII CSV Data formats.
Just Data – Stock Market Software and Data provider.
CycleTrends Daily 6 – $399
Includes Premium Software Support and Maintenance (minor updates to v6.1 etc) for one year after purchase. An optional Premium Support and Maintenance subscription is available for continued premium support and minor updates thereafter.