EURUSD: 8.04pm

Hurst's work advises that cycles are additive in that higher order cycles are comprised of all lower order cycles. Deciding which length cycles to use however is key and then if you are using various lengths, what factors are used to determine which ones are combined. Hurst lays out time frames from 18years downwards and I am running a study for this on the daily chart that I post from time to time. However, the works of Goodman, Fibonacci, Donchian, Andrews, etc, etc pretty much centre around the ongoing retracement of price to 50% of its expansion at any given point in time. Looking backwards, it would therefore follow that price had previously expanded to double its future retracement. Many price envelope style studies (whether Keltner, Bollinger, Donchian, regression studies) focus on the volatility or range around a median and that median having at times a magnetic quality. It is this tendency that provides many a trader with the hope that their study is the one. The key to all of this work however, is the choice of cycle length being used to trade, be it daily, weekly, monthly or whatever and the way in which that cycle is portrayed (which MA version or otherwise and what settings to use). Hurst's work suggests trial and error to find the dominant cycle using shifted moving averages and it would seem that recent developments in technical analysis can find the dominant cycle for you rather than eyeballing the charts. However, in my work, I have found that the dominant cycle shifts relentlessly, expanding and retracting in length, sometimes with momentum, sometimes not! I have therefore focused on working on a periodic 'ladder' beginning with a lower order cycle length and then building outwards with the same expansion ratio throughout. In this way, the gaps between the cycles lines are pre-determined and provide exact targets in time and price. These are my 'T' lines. It is also then possible to track the likely future journey towards these trend targets by monitoring the cycles' 'waves' over their lifetime (their rise and fall) and all their lower order cycles. As I said at the beginning, cycles are additive, so if T7 is leading the show as it has been, monitoring what the future cycles D1 to D7 are doing will help to pre-determine the journey T7 is taking. Nothing is perfect but I keep trying!