Swing H's/L's versus Cycle H's/L's

Discussion in 'Technical Analysis' started by golablue, Jun 25, 2006.

  1. I've recently come across the following statement:

    "Every cycle high is a swing high, and every cycle low is a swing low. But every swing high is not a cycle high, and every swing low is not a cycle low."

    Can someone please explain this statement to me in terms of the distinction between swings and cycles?

  2. Ex_d


    the cycles? what you mean? on stock market this cycles not exist...cause it's easy to see...for example FFT (fast fourier transform) probably theare are some kind of cycles on commodities markets - seasonal effects..
  3. No insight from any of the technical analysis junkies here on ET?

    c'mon....someone's gotta have a comment or two.....
  4. cnms2


    Say "please" ... :)
  5. Ex_d


    he he... ok try to catch cycles:)
    in sentence above have been explained very stupid thing... the cycle can include few swings.... that all...
  6. Looks like that might be not quite right.

    Perhaps try this:
    "Every cycle high is close to a swing high, and every cycle low is close to a swing low. But not every swing high is close to a cycle high, and not every swing low is close to a cycle low." :confused:
  7. I was hoping that you might distinguish "swings" from "cycles" for me, please.
  8. Probably Swings are trade decisions for Long/ Short positions; Cycles are price patterns moving between Highs and Lows. My 2 cents.
  9. Hi Golablue,

    The way I think about swing highs/lows vs cycle highs/lows is as follows. Pick a timeframe such as a daily chart and identify all of the swing highs/lows. Now consider a higher timeframe such as a weekly chart and identify the swing highs/lows on that chart. If you impose the weekly highs/lows on the daily, those become your cycle highs/lows. See the attachment for an example.

    In the attached chart, the yellow line identifies the cycle highs/lows (approximated from the weekly chart) and the cyan line identifies all the swing highs/lows. Note that all cycle highs/lows are swing highs/lows but not all swing highs/lows are cycle highs/lows.

    Another way to highlight the cycles in a chart is to use the slow line of the MACD. Hope this helps.
    #10     Jun 27, 2006