Cycle Indicator

The Cycle indicator helps to highlight the fundamental cycles of price variation.

Calculation Method

I = [4.1 * Stochastic%K(5,3) + 2.5 * Stochastic%K(14,3) + Stochastic%K(45,14) + 4 * Stochastic%K(75,20) ] / 11.6

MM = Arithmetic Moving Average of I over 9 bars.

CYCLE = I - MM

Example

Interpretation

In general, cycles allow predicting developments and in particular trend reversals.