concept is derivedfrom two concepts that attempt to relate the cycles of the financial andcommodity markets to linear, fixed-periodicity cycles.Calendar CyclesWe record periods of time by days, weeks, months, years, etc. in accordance with the relationship of the earth, moon and sun. These calendarperiods are precisely defined and predictive of fixed-periodicity and serveus well for record keeping purposes and accurately reflect the seasonaland agricultural growth cycles. They seem to imply that events progressin regular fixed periodsPhysical CyclesFixed length cycles are found in many other relationships in the physicsof nature, such as sound and light frequencies. While these cycles mayappear to be irregular, they are composites of many individual, fixedlength cycles. These cycles are a reaction to a physical phenomena, nota result of an internal growth process.These calendar and physical cycles are easy to understand andobserve. They appeal to the analytical type with a highly developed leftbrain who warns everything to easily work out in mathematical precisionand prediction. It is a mistake to believe that the cycles of human naturealso unfold in periods of fixed periodicity- All freely traded markets aredriven by mass psychology - periods of optimism and pessimism of thegroups of participants. The social cycles of mass psychology are not of thesame nature as the physical and calendar cycles. Mass psychologicalcycles unfold in a dynamic process of growth by cycles that are not offixed length periodicity but are continually expanding and contracting inrelationship to prior cycles.Cycles of fixed length periodicity are called static cycles as theyimply that the same cycle or condition will endlessly repeal over time.Static cycles imply change, but not growth. Static cycles imply that aprevious condition will continuously repeat at predictable fixed periods.Static cycles are represented geometrically by a circle,Dynamic cycles represent growth, evolution and expansion. Theyrepresent a repetition of the process, and the process will be connected to
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Dynamic Trader - Chapter 5
the past but not duplicate the past. As we shall see, dynamic cycles implythat conditions will repeat in relation to prior cycles by dynamic, growthproportions, not static, fixed repetition. Dynamic cycles are representedgeometrically by a spiral. A spiral is a circle that is evolving andexpanding.The Theory Behind Static CyclesSo-called component cycles (individual, fixed-length cycles) are combinedinto a composite cycle (the summation of The underlying componentcycles) in an attempt to mirror the past time activity and project the rimeactivity of the future. If time cycles of human activity, including financialmarket activity, were a composition or summation of component cycles ofUsed-length periodicity, a composite cycle that would mirror the past andaccurately project time of change into the future would be possible if allcomponent cycles and iheir proper phasing were known.After decades of sophisticated research from this perspective,including massive computer power and millions of research dollars,consistently, reliable future projections of time activity have not beenachieved by summing alleged, fixed-length component cycles into acomposite cycle! How is this possible? Why hasn't this problem orchallenge been solved? Is it the failure to identify all underlying,component cycles and their proper phasing? I don't think so,The problem has not been solved because the solution is attemptedfrom a belief in a concept that does not exist in the reality of time andgrowth process of human psychology. Time is not linear, bat multidimensional and non-linear. Time does not unfold in linear cycles of fixedlength periodicity. Time unfolds in evolving, growth cycles of dynamicproportion.All methods of time analysis of the price activity of the financial andcommodity markets that assume that cycles of fixed-periodicity are theunderlying cause of market cycles have consistently failed with oneexception. The history of "cycle" analysis of the financial and commoditymarkets is a history of perpetuating the myth that fixed-length cycles existand provide predictability for investors and traders. Study the history ofcycle analysis including the analysis and predictions of past decades andyou will find a history of no more than coincidental success.The exception to this condemnation of fixed-length cycles is thatmarkets often exhibit a temporary rhythm of relatively fixed-length- shortTerm cycles. They are temporary in that they usually are evident for only afew days or weeks. They are relatively fixed-length because the cyclelength (low-low) will vary by 10% or so. The cycles are short-termbecause they usually are only a few days to a few weeks in length. Any
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Dynamic Time Analysis
one market exhibits these short-term rhythms less than one-third of thetime.The Theory Behind Dynamic CyclesThe Universe does not sponsor stasis or regression. Everything in the universe is constantly evolving, expanding, growing. Time cycles of masspsychology, including those related to the financial markets, are relatedto evolving, dynamic ratios of growth, not static, fixed period divisions.If market activity is to be understood, that understanding must bebased on an accurate concept and theory based on reality, as well asspecific analytical techniques that allow one to project the future historicaleffects with consistent reliability.Ratio and proportion are important concepts from antiquity. Marketsevolve in proportion to past time cycles by dynamic growth ratios.Price movements in the financial markets reflect the optimism andpessimism of the participants, hi other words, price movements are aresult of the mass psychology of the traders and investors participating inthe market Psychological unfoldment is always a dynamic process, oneof growth and evolution. Therefore, market cycles must be related in adynamic manner.The current position of a market is related to its past condition, as noeffect is without a cause. The current position of a market is related to itspast position by dynamic, growth cycles, not by static, fixed cycles.Current cycles are hi dynamic proportion or ratio to prior cycles. Themost important scries of dynamic ratios, known as the Fibonacci ratios,are those related to the Divine Proportion, 1.618.Waves of similar degree will relate in dynamic proportions in time justas they do in price. This does not just mean that one cycle is only relatedto one past cycle, but that any one cycle should be related by most if notall, prior cycles of waves of similar degree. As a market unfolds, it willweave a dynamic web of time and price proportion just as any one of thethree dimensional, regular polyhedra (Platonic solids) weave a dynamicproportion of space between edges, sides and vertices.Ideally, we would know the cause of cyclic activity in human affairswhich should then allow us to project those cycles of change with precision, I don't know what is the cause. I'm in good company, becauseneither does any one else that I'm aware of! While the study of such fieldsas chaos, non-linear dynamic, geometric growth patterns and other relatedsubjects provide greater understanding and insight into the unique natureof time and growth processes, they have not yet provided a specificansweras to what is the cause.
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Dynamic Trader - Chapter 5
From the standpoint of trading, cause is not particularly relevant. Weare concerned with the other side of the equation, effects. We measure theeffects of market activity (historical data) to see if there arc consistentrelationships that allow for some degree of predictability of the future.We develop a model of how things work which provides a basis for understanding how the process unfolds and a guide for the application of certainprojection techniques.I have discovered from the study of past historical data that attemptingto relate market cycles to composite cycles which are a summation offixed-length, component cycles simply does not work to a reliable degree.This suggests that the model of relating financial cycles to composite,physical cycles is not correct.I have found that the majority of trend changes occur when severalpast cycles are related at or near a single point in time by the samedynamic cycles (ratios) that arc found in other natural growth processes.The best model for this is the geometric growth processes that are foundin crystal structures which grow in the same geometric relationships foundin the regular polyhedra.While a model of a process does not necessarily reveal the cause, ithelps us to gain a better understanding of what is going on as well as keepus on track hi further study and research,I would strongly encourage all traders to pursue the study of geometricsolids and growth as well as chaos, non-linearity and multi-dimensionaltime. You will gain a greater understanding of how markets unfold andmay even discover the cause. But, be very careful! Such a study canbecome an obsession, and you can easily lose sight of the goal which isTrading Profits. We can discover all we need to know for trading froma study of effects (historical data) and save the intellectual pursuits for ourfree time.
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Dynamic Time Analysis
Projecting The Time Of Trend ChangeFor most traders, time is the most difficult dimension of market activityto anticipate. Yet, time is a critical factor in our market analysis. If we areable to enter and exit a trade at the right time, we are able to take all thegain or profit that is available from any market movement regardless ofthe extent of the price move. That is the best that can be done.W. D. Gann recognized the importance of time cycles or the timefactor as he called it for trading analysis. As with price, he recognized thata market unfolds in proportion to prior cycles, just as a crystallinestructure unfolds in well defined, predictable structure and proportion.Unfortunately, Mr. Gann once again did not describe which proportion(ratio) or which previous time cycle a current market is "working out inrelation to."Price and time are the effects of the same cause. Time = Price or asW. D. Gann said: "When time and price square, change is inevitable."A well accepted and implemented method of price projection inmarket analysis is to use the Fibonacci, dynamic, growth ratios of .382,-618, 1.618, etc. Yet, the same analysts will use static, fixed length andequal division ratios for time analysis. This reflects a lack of understanding of the equality of time and price and that time and price are theeffects of the same past causes.
If time and price are the effects of the same cause, the sametechniques used for price analysis should be applicable to timeanalysisanalysis.There are two methods of dynamic time analysis: Time Cycle Ratiosand Time Rhythm Zones. Each complements the other. Time RhythmZones projects a broad period with a very high probability of trendchange. Time Cycle Ratio projections are very narrow time zones of justa few days from where most trend changes lake place. When the TimeCycle Ratio period coincides with the Time Rhythm Zone period, theodds increase for trend change.Each of the two methods arc dynamic in that they adjust for recentmarket activity. Each method is a leading indicator in that the timeprojections are made well in advance in the same manner as the priceprojections,
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Dynamic Trader - Chapter 5
Time Cycle RatiosPrior time cycles are proportioned and extended forward in time in thesame manner as price cycles are proportioned for retracement, alternatecycle and extension. The general term I use few this method of timeanalysis is Time Cycle Ratios™ (TCR).The time of change will occur at a "cluster" of important ratio relationships of past cycles all falling within a narrow time zone, usually of 2-5days, with intermediate term swings and often as little as 2-5 hours withshort-term swings, I call these projected time clusters a Projected TurningPoint Period™ (PTPP), Projected Turning Point Periods should be viewedas periods of change when energy enters or exits the system (market). Ifthe market is in balance (consolidation, trading range), price willfrequently begin a break-out of the trading range at a Projected TurningPoint Period (energy entering a balanced system). If a market is trendinginto a PTPP, a trend reversal is likely.Projected Turning Point Periods should be considered in the samemanner as projected price zones. Each represents a high probability zoneof support or resistance. PTPPs are lime support or resistance zones.Time Cycle Ratio™ ProjectionsTime projections are done in exactly the same manner as price projections.A prior time cycle is proportioned and projected forward from the end ofthe cycle or from an alternate cycle pivot just as we do with price. It isimportant that traders learn the terminology and labels for the timeprojections in order to be able to quickly recognized what is beingdescribed on the charts and time projection reports.The time between any pair of pivots can be measured, proportionedand projections made. However, there arc a few awing relationships intime that are the most important for projecting future dates with a highprobability of trend change. First, I will describe the individual TCRmethods. We will then see how they are combined to project future timezones called Projected Turning Point Periods™ that have a highprobability of trend change.
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Dynamic Time Analysis
Time Retracements (TR)A Time Retracement is the same as a price retracement. It is the amount oftime that a market moves counter to the prior trend. As a market advancesor declines, there will be more than one prior swing extreme from whereto measure time retracements. In other words, we will have two or moredegrees of retracement to consider.
Time Retracement ratios are similar to those used for PriceRetracements: Note that 78.6%, a ratio that is very important forprice retracemcnts, is usually not important for time retracement.38.2%, 50%, 61.8%, 100%, 162%, 200%, 262%.
Time Retracements are projected in the same manner as priceretracements. The lime range of A to B is measured, proportioned andprojected forward from B to calculate time retracements. As long as priceis declining away from the swing high at B, the lime retracements arepotential periods for a low.
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Time RetracementsMost markets make corrective highs or lows at or,very near Time retracement in the same manner as the highs and lows are made at or very nearprice retracements. The March 2. 1994 low in gold was made just one dayprior to the 50% retracement in time of the rally from the Sept. 13, 1993 lowto Jan. 5, 1994 high. The April 22 low was made one week prior to the100% time retracement.The chart below appears to have many days with no bars. It is a calendarday chart which includes spaces for all non-trading.
How The TCRs Are Labeled On The ChartTCR (Time Cycle Ratio) projections involve two or three pivots. The timeperiod between two pivots is proportioned and the projections are madefrom the second point. The TCR label is always placed at the second datefrom where the projections are made. In the illustration above, the timeperiod from the Sept. 13 low to the Jan. 5 high is multiplied by 50% and100% and the product is counted forward front the second date, Jan. 5. Youcan see the TCR label below the Jan. 5 date which indicates the projectionwas made from Jan. 5.Alternate Time Cycle Ratio projections involve three pivots. They willbe described and illustrated later in the chapter.
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Dynamic Time Analysis
Calendar Days Verses Trading DaysThere will be little difference to the projected dates whether calendar ortrading days are used. Keep in mind that we are proportioning a period oftime and projecting forward the proportion of time. We are not makingstatic counts.The gold chart on the previous page shows the 50% and 100% TimeCycle Ratios by trading and calendar day counts. The TD and CD timeretracements are only one day different in each case.
The 50% time retracement is only one day different whether countingforward 39 trading days or 57 calendar days from Jan. 5,1994. The ratioof trading days to calendar days of any time period will be about 70% or5/7, Trading day and calendar day projected dates will only be different by1-3 days depending on the length of the period projected forward and howmany non-trading days there are in the elapsed period to the projecteddate. TCRs should be done by calendar clays for the most accurate results.
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Dynamic Trader - Chapter 5
Time Retracements
The Aug. 2, 1993 high in gold was made dead on the 61.8% timeretracement of the July 20 high to March 10 low. A minor high was madeat the 50% lime retracement. Every high or low in every market will norbe made right on a time retracement date. But, like price retracements,most significant trend changes will be made at or very near a timeretracement.
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Dynamic Time Analysis
The Oct. 5 low was made just one day after the 50% timeretracement.
The Nov. 22 low was made dead on the 61.8% time retracementof the Oct. 9 low to Jan. 31 high (DJ1A close-only data). Note thatNov. 22 was a higher low than the one made in April. This is anexample of a trading range terminating at a TCR projection.
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Dynamic Trader - Chapter 5
Time Retracements
The decline from the July 19 high stopped at the 61.8% timeretracement and completed one trading day prior to the 100% timeretracement.The rally that followed made a top on Oct. 23, one trading day afterthe 61.8% time retracement.
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Dynamic Time AnalysisTime Retracements
The decline from the Oct. 25 high stopped one trading day prior tothe 50% time retracement. The slightly higher low was made at the 61,8%time retracement which was followed by a sharp advance.
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Dynamic Trader - Chapter 5
The counter trend low was made just three trading days after the61. 8% time retracement.
The July 12 high was made at the 100% Time Retracement and theAug. 5 low at the 61.8% Time Retracement.
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Dynamic Time Analysis
Alternate Time Projection (ATP)Alternate Time Projections are calculated in the same manner as AlternatePrice Projections. In the case of ATPs, the time range of trend swings arecompared with prior trend swings and the lime range of counter-trendswings are compared with prior counter-trend swings.Alternate Time ProjectionsThe most important ratios to use for ATP projections are:38.2%, 50%, 61,8%, 100%, 162%, 200%, 262%, 424%.
The time range of the prior alternate cycle is measured, proportionedand projected forward from the beginning of the new swing. The timerange from pivot number one to two is measured, proportioned andprojected from pivot #0.
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Dynamic Trader - Chapter 5
Alternate Time Projections may be made from other prior swings Inthe same direction as the current swing. In the illustration below, thetime of the second alternate swing from pivot #3 to #4 is measured,proportioned and projected from the current pivot #0.
The chart examples on the following pages will illustrate manyvariations of the Alternate Time Projections, The important factor to keepin mind is that time projections are mode in the same manner as the priceprojections.
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Dynamic Time Analysis
Alternate Time Projections
Alternate Time Projections always involve three pivots. In theillustration above, the rally from the March 10 low to the May 28 high isproportioned and projected from the next low of June 14. In these chartexamples, the ATP label (Alternate Time Projection) is always shown atthe pivot from where the projections are made. The Aug. 2 high wasmade just one day prior to the 61,8% ATP. The Sept. 13 low was madedead on the 100% ATP where the time range of wave C equaled the timerange of wave A.It should be clear from this chart how the Alternate Time Projectionmethod is the same as the Alternate Price Projection. The number andletter labeling above are Elliott Wave counts. A typical relationship of awave 5 price range is 61.8% of the price range of waves 1 through 3. Inthe case above, the wave 5 time range was 61.8% of the time range ofwaves 1 through 3. A typical price relationship of an ABC correction isfor the time range of the C-wave to be equal to 100% of the time rangeof the A-wave. This was also true of time for the Sept. 13 low in goldshown above.
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Dynamic Trader - Chapter 5
Alternate Time Projections
The three bear-trend, gold swings shown in the chart above arc eachrelated to each other by dynamic ratios. Aug. 14, 1994 was the 50% ATPof the prior bear swing of Jan. 5 to April 22. Aug, 14 fell on the weekend.The next Trading day, Aug. 16, the final low was made that preceded thesharp advance.The Dec. 5 low was made one day after the 61.8% ATP. Every highand low will not be made dead-on an alternate time projection, but mostwill fall at or within a few time periods of one of the major ATP ratios.Alternate time projections are always viewed within the context of othertime factors. As we will see in later examples, the more time projectionsthat fall within a period, the greater the probability a trend change will bemade.
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Dynamic Time Analysis
Alternate Time Projections
The Oct. 17 high was made right on the 61 .8% ATP. Bonds havecontinued higher. The next significant top will probably be made at ornear an ATP.
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Dynamic Trader - Chapter 5Alternate Time Projections
The March 16 high was made one trading day after the 100% ATP.The June/July tops were made within a couple days of the 100% and162%ATPs.
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Dynamic Time Analysis
Alternate Time Projections
The S&P made a low just two trading days after the 100% AlternateTime Projection, Trading range or consolidation periods often make highsand lows at or very near 100% ATPs,The chart above is a close-only chart. If a market becomes veryvolatile with wide range days near trend changes, all analysis should beconsidered from close-only data as well as daily range data.Note that a low was made in early March that was slightly below theApril 10 low. While March made a slightly lower-low than April, theApril 10 low completed the corrective period. It was from April 10 thatthe new bull trend began the rally to a new high.
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Dynamic Trader - Chapter 5
Alternate Time Projections
The C wave of this ABC rally was exactly equal to the number oftrading days of the A wave.
The wave 5 low was made on May 28, one day prior to the 61.8%Alternate Time Projection of wave 3.
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Dynamic Time Analysis
Other Time Cycle RatiosTime Retracements and Alternate Time Projections are the two mostconsistently reliable Time Cycle Ratio projections. A TCR may be madefrom any two pivots and an alternate TCR from any three pivots. Thefollowing pages illustrate many other Time Cycle Ratios that are not TimeRetracements or Alternate Time Projections.Time Cycle Ratio Projections: High-to-High Cycle
The March 31 high was made at the coincidence of the 100% high-highTime Cycle Ratio projection of the Sept. 28 high to Dec. 29 high and threetrading days before the 61.8% high-high Time Cycle Ratio projection ofthe Sept. 28 high to Jan. 23 high.
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Dynamic Trader - Chapter 5
Time Cycle Ratio Projections; Low-to-Low
The Aug, 22 low was made just one day following the 162% TCRprojection of the March 10 ro May 11 lows.High-lo-high and low-to-low projections are commonly considered cycleprojections. Contrary to popular opinion of traditional cycle analysis, highto-high and low-to-low cycles are usually not repetitive, fixed periods.
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Dynamic Time AnalysisTime Cyde Ratio Projections: Low-to-Low
The Oct. 17 low was made within one day of the 61.8% cycleprojection of the prior two lows.
The June 5 and July 26 lows were each made at TCRs of theprior two lows.
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Dynamic Trader - Chapter 5
Time Cycle Ratio Projections: Low-to-Low
Bach of the minor lows during this period for the British Poundwere made at TCRs of the prior two lows. Traditional "cycle" analysiscontinue to perpetuate the myth that low-to-low "cycles" are repetitiveand fixed period. We can see the low-to-low cycles are more frequentlydynamic proportions of past cycles, not static, fixed length cycles,
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Dynamic Time Analysis
Time Cycle Ratio Projections: High-to-High
As the mark declined, highs were made within a few trading days the61.8% TCR of the prior two highs. The early Feb. high only lasted abouta week. The Dec. 27 and March 29 highs were followed by intermediatedeclines to new lows.
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Dynamic Trader - Chapter 5
Time Cycle Ratio Projections: Low-to-Low
The Aug. 22 low was made at the 50% TCR of the prior Dual Cycleor double low-to-low period. This low was also at the 61.8% TimeRetracement.
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Dynamic Time Analysis
Time Cycle Ratio Projections
The June 4 low was made at the 61.8% TCR of the prior Dual Cycle(1/4L-3/1L-4/8L).The chart above shows three of the TCRs that coincided at the June 22low. The 100% Alternate Time Projections (5/20H-6/4L projected fromthe 7/9H), the 50% Dual Cycle Projection (3/1L-6/4L) and the 50% TimeRetracement (6/4L-7/9H),Most significant highs and lows are made at the coincidence of severalTCRs.
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Dynamic Trader - Chapter 5
Time Cycle Ratio Projections
All of the lows during this unusually prolonged trading rangeperiod for the Japanese Yen were related by proportions of one and itseven divisions and multiples. The Feb, 9,1996 low was made at the200% TCR of the prior Cycle (L-L). The July 5 low was made at the100% TCR of the Dual Cycle. A Dual Cycle is three consecutive lowsor two consecutive low-to-low cycles. In this case, the Dual Cycle wasfrom the Sept, 15,1995 tow to the Nov. 2,1995 low to the Feb. 9,1996 low (L-L-L).The June 12 low was made at the 100% TCR of the prior Cycle(L-L). The next low on July 12 was made on the 50% TCR of the priorCycle (L-L). The April 11 low was made at The 61.8% TCR of theprior Cycle. This projection is not illustrated in the chart above, butyou can see that 62CDs is 61 .8% of 99CDs.All of the distinct pivot lows during the period shown above arelinked to prior cycles and dual cycles.
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Dynamic Time Analysis
Alternate Time Projection Variation
This TCR has taken the period from a low-to-low and projected fromthe intervening high. This is another form of the Alternate Time Projectionwhere a period between two pivots is projected from a third pivot.The low-to-low period from April 11 to May 8 is 27 calendar days.That period is projected from the intervening high on April 26, The 100%Alternate Time Projection falls on May 23, the exact day of the next high.Remember that the date with the ATP label is the date the projectionis made from. In the chart above, the ATP label is just above the April26 date. The initial time period measured is from April 11, 19% to May8, 1996. This period is projected from April 26, May 23 is the 100%ATP projected from April 26.
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Dynamic Trader - Chapter 5
Alternate Time Projection Variation
The 162% TCR of the April 26 high to May 23 high is projected fromthe intervening low of May 8 for a projected date of June 21. The next lowfell just one day earlier on June 20.
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Dynamic Time Analysis
Time Cycle Ratios In The Stock MarketLike all factors of Dynamic Trading, Dynamic Time Analysis works in allactively traded markets.
The Dec. 7,1994 low in AT&T was made where the time range ofWave-C was 61.8% of the time range of Wave-A. The Dec. 7 low at the61.8% ATP coincided with the 61,8% Alternate Price Projection.There is a very high probability of trend change in any market whenthe same ratios of price and time factors coincide like they did at the Dec.7 low for AT&T, While this set-up is not frequent, it is a very highprobability trend reversal set-up.
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Dynamic Trader - Chapter 5
Barnes and Noble Makes Important Low at the Coincidence of Time,Price and PatternI'm still hoping for a big push by Barnes and Noble for my book so let'stake a look at another example of their Stock.This chart is a perfect example of the integration of time, price andpattern analysis. The July 16, 1996 low was made at the coincidence of a38,2% time retracement and 61,8% price retracement. Note how the Jan.5,1996 to May 23, 1996 rally was an ideal five-wave sequence and theMay-July decline was a perfect ABC correction into time and pricesupport
Is every important high and low made at the ideal coincidence ofprojected time, price and pattern? Of course not. But many are. Thetrader's job is to keep alert and be prepared and identify the bestopportunities as they are unfolding.Trading is not about forecasting the future. Trading is not abouthaving an opinion of the position of every market all of the time. Tradingis about recognizing and taking action on high-probability/low-capitalexposure opportunities. If you approach trading from any otherperspective, it will only become a very costly hobby, not a profitablebusiness.
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Dynamic Time Analysis
Trend Vibration™The Trend Vibration (TV) method of time projection uses the concept ofTime Cycle Ratio projections but in a unique manner. Trend Vibrationtime projections assume that the initial thrust and counter-trend of amarket trend often provides the time range that projects subsequent highsand lows within the ensuing trend.Initial thrust and counter-trend is another way of saying cycle. Cycle isanother way of saying vibration. In Elliott wave terms, waves one throughtwo is the initial vibration of a five-wave, impulse-trend. More importantly, the final pivot of the trend should be made on a proportion of theinitial ''vibration."
The initial "vibration" of the bond trend that began in early Nov, of1994 lasted from the Nov. 7 low to the Jan, 25 low. Note that the Dec. 28high was made at the .618 division of the initial low-to-low' cycle orvibration.The subsequent TCRs of the initial low-lo-low cycle are shown in thechart above. The March 16 high was made one day following the .618TCR, the April 19 low three trading days after the 100% TCR and theJune 2 top precisely at the 1.618 TCR of the initial vibration. The generalrhythm of the trend was related to the initial vibration. More importantly,the trend terminated right on a TCR of the initial vibration.
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Dynamic Trader - Chapter 5
Trend Vibration
The initial vibration from the Aug, 15 low projected both the first andfinal top of the rally that completed on Jan, 19. The Dec. 6 top was madeprecisely on the 162% TCR of the initial vibration and the final top of Jan.19 was made just one day after the 262% TCR.The initial high of Sept. 14