Market Cycle | by ForexCycle.com | Tuesday, 30 December 2008 12:13 UTC
When determining the length of a cycle, it suffices for us to measure the time from one crest of the wave to the next, or from one bottom of the wave to the next. A perfect model would feature a uniform distance between high points and between low points. In the currency market, however, it is extremely rare to find such a regular pattern, even though the lengths of cycles are very similar. Hence, we actually use the average distance to determine the length of a market cycle.
The length of a cycle can be simply calculated as follows:
The same process can be repeated to calculate the high points of a market cycle.
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