Stock-Market-Observations

HURST CYCLES

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2009-2014

2011-2013

2012

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PRINCIPLES OF HURST’S CYCLIC THEORY

The Principle of Commonality – All equity (or forex or commodity) price movements have many elements in common (in other words similar classes of tradable instruments have price movements with much in common)

The Principle of Cyclicality – Price movements consist of a combination of specific waves and therefore exhibit cyclic characteristics.

The Principle of Summation – Price waves which combine to produce the price movement do so by a process of simple addition.

The Principle of Harmonicity – The wavelengths of neighboring waves in the collection of cycles contributing to price movement are related by a small integer value.

The Principle of Synchronicity – Waves in price movement are phased so as to cause simultaneous troughs wherever possible

The Principle of Proportionality – Waves in price movement have an amplitude that is proportional to their wavelength.

The Principle of Nominality – A specific, nominal collection of harmonically related waves is common to all price movements.

The Principle of Variation – The previous four principles represent strong tendencies, from which variation is to be expected.

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HURST CYCLE SOFTWARE

You can find further information about Hurst’s Cyclic Principles here.  Lots of good Hurst info at this link.

For anyone interested in keeping Hurst Cycles by hand . . . it’s a LOT of work.

The Hurst cycles course is about $500 (Hurst Cycle Course), which you will definitely need to chart by hand  Been there, done that – and wound up not keeping the cycles up to date.  You fall behind and miss important turns.  Incidentally, there is a LOT more to Hurst cycles than what I show in my blog charts.

The software to generate the cycles is excellent and highly recommended (Sentient Trader).  It automatically generates all of the bells and whistles that Hurst developed and does it accurately.  But if all you want is the Cliff Notes version of the cycles, try Hurst Signals.  It’s consists of a concise update of the different cycles and no work is involved.

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