CycleTrends Live uses Cycles and Technical Analysis to analyze and forecast Financial and Forex Markets in Real Time. It is an invaluable aid to profitable trading and works equally well with all the different components of the Financial and Forex markets, including US and international equities and indices, commodities, precious metals, gilts, currencies, funds and futures.
The software supports Live Intraday data feeds provided by Sharenet.
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. Cycle Trends 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.
Cycles are not relied upon on their own for making trading decisions. CycleTrends Live gives splendid results when triggering buy and sell signals for CFD trading.
Instead of using End of Day prices for analysis, a live price feed (as in Forex trading) gives traders the option of using prices in Intra-Day time frames varying from 1 to 300 minutes.
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.
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
- Cande 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
Cycle Trends Live 6 – $599
ncludes 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.