That is precisely the key. The phase of the cycle would have to be matched with a starting low point (-1) to use a point of reference for the amplitude conversion
Hello again everyone,
To further illustrate the point of cycle strength and its application to cycle analysis please review the attached image.
Applied is the following:
1) Second Window I have G browser set at top 1 cycle and starting at cycle 3, which has a period of 24 and amplitude of 0.0880. Cycle Strength = 0.0880/24= 3.7 x 10^3 (0.0037)
(modified cycle strength formula using native amplitude to see if the principle still applies, it would be nice to compare with the price adjusted version)
2) Third Window I have G browser set at top 1 cycle and starting at cycle 2, which has a period of 68 and amplitude of 0.1710. cycle Strength = 0.1710/68= 2.5 x 10^3 (0.0025)
3) Fourth Window I have G browser set at top 1 cycle and starting at cycle 3, which has a period of 92 and amplitude of 0.6161. cycle Strength= 0.6161/92= 6.7 x 10^3 (0.0067)
Although G browser has cycles with period 92 and 68 as the top two dominant cycles, Cycle strength, on the other hand, tells us that it is the 92 and the 24 period.
This can be visually confirmed using a little indicator I created entitled Dynamic Cycle Explorer (DCE). This indicator is still work in progress but it is the bases for comparing what price is actually doing to the determined theoretical cycle.
The purpose behind the Dynamic Cycle Explorer (name coined by Dr. Theinen) is to measure phase and amplitude variance between actual and theoretical market cycles.
DCE is nothing more than the difference between two centered moving averages. It is a method developed by Millard called "average minus average". The first centered MA is that of the full length of the dominent cycle period, while the other is half length.
If you refer back to the image attached you are visually able to determine the quality of the theoretical cycle to the actual price cycle and make a decision whether they are in synch.
Furthermore, the difference in amplitude between actual and theoretical cycle, as well as phase difference can be made evident (and measurable).
This is crucial for trading purposes because with that information you are able to tell whether the theoretical cycle should be adjusted in phase or in amplitude to match what price is doing for the purpose of adjusting the projection.
Please note that the change only relates to phase and amplitude and not periodicity. Periodicity is controlled by the Cycle Strength Factor (in addition to other things), when that changes, the projected cycle changes, as well as the new amplitude and phase (and hence the DCE changes to match the new cycle, still needs to be implemented).
Lastly, even though cycles with period 92 and 24 were determined to be the top two dominant cycles (based on cycle strength), visual inspection of the DCE helps us determine that historically only cycle with period 24 had a real impact on price action and thus it would be a more reliable cycle to follow for the purpose of trading.
I hope i made sense with this post, if not let me know.
Here you go.
It is in a separate window since placing it on a chart for a different symbol would result in indicator values very different that current prices and them the indicator itself would be practically invisible. This way you can use the slopes and alerts that the indicator is taking care of
Can you make this All Averages indicator (or if you have a better all averages ma indicator), have the ability to have symbols option.
What I mean is to have the ability to have say a usd/chf MA on a eur/usd chart.
And can I have labels added to it at the end so I can tell which MA is which.
Also can I get a subchart version.
would you be kind to add alert to the eliot oscillator indi..when the value is smaller than the swing high signal for short
or greater for long..
Cycle Strength & Bartels test
Any luck incorporating Cycle Strength and Bartels test into G Browser? I hope the articles provided were helpful.
Just Brilliant SIMBA! Your kindness had saved me a lot of tinkering with MQ4 code (he he he). Many thanks for your effort.
I have to concur that smoothing and detrending produces better results since many price anomalies (such as news spikes and wave stretching) are removing from the picture before a cycle is determined. Your picture further support that theory. However, it is important to understand that this applies only to the most recent history since cycles change and adapt in the long term.
I further agree that G Browser is an excellent piece of work and quite reliably for trading, if used properly. My trading has experienced a significant boost since incorporating it in my analytics (along other tools).
What remains is to incorporate a statistical test (or any other method) to test each cycles relevancy to the market and its persistence and to align the phase to a low point in history as a start point (as you had kindly pointed out earlier).
On another note, quick question/confirmation, is "Maxper" the number of historical periods analyzed by G browser for the purpose of determine cycles?
I have modified your indy to be able to handle a summation of 3 tma differences,please find attacched below, DCE3.I tested it on M1,visually,personally I find it slow,but you may be interested in doing your tests.
I have been checking your DCE1 and my mod DCE3,I believe it is better to use your DCE1,and use the cycle with the shortest periodicity amongst the 3 cycles with higher amps per bar,as defined by 5.1 _CS_D&S...For example if 5.1_CS_D&S says 3 top cycles are 44,66 and 29 periods each,using DCE1 with 29,14, jointly with Gb 5.1_CS_D&S with 3 top cycles,gives advance warning/confirmation of turns...