Stock Market Time Cycle using Octave Scale of Music

A cycle is an event, such as a price high or low, which repeats itself on a regular basis. Cycles exist in the economy, in nature and in financial markets.  Cycles are also part of technical analysis of the financial markets. Cycle theory asserts that cyclical forces, both long and short, drive price movements in the financial markets.

Price and time cycles are used to anticipate turning points. Lows are normally used to define cycle length and then project future cycle lows. Even though there is evidence that cycles do indeed exist, they tend to change over time and can even disappear for a while

Every movement in the market is the result of natural law and a Cause which exists long before the Effect takes place and can be determined years in advance. The future is but a repetition of the past.

There must always be a major and a minor, a greater and a lesser, a positive and a negative. In order to be accurate in forecasting the future, you must know the major cycles. The most money is made when fast moves and extreme fluctuations occur at the end of major cycles.

I have experimented and compared past markets in order to locate the major and minor cycles and determine what years in the cycles repeat in the future. After years of research and practical tests, I have discovered that the following cycles are the most reliable to use:

One of the lesser know price projection techniques is actually based on the equal octave scale of music using 12 equal temperament  

I often use the analogy of the planetary system and gravity to explain market highs and lows.

Modern day science fiction movies are always telling stories of meteorites crashing into the Earth and destroying everything. The reality is that if a meteorite hit Mercury or Venus, or Mars, or the Moon, all the other planets in the entire system would feel it and possibly radically change their orbits causing death and destruction on the Earth.

The force of gravity ties in all the planets in their orbits and to move one you must move them all. The highs and lows in the stock market are the same thing. They are all mathematically connected and although we can’t change a past historical date, the future high or low will tie in harmonically with all the prior ones when it occurs. We see this every day with simple cycle analysis of 4-year cycles or 10 and 20-year anniversary patterns. Each major origin will converge to a square root target price and a harmonic time period. At the `final’ high or low there will be several well known cycles all converging and usually time angles in days, weeks and hours will all come together. In most cases the market will close on the exact number it is supposed to and that is the final giveaway that the change in trend is occurring.

In Below Video we discuss this cycle in detail and how to find turning point in markets.

We discuss many other time cycle as part of our trading course.