OnLine Cycle Analyst's Seminar - Cycle Identification - 2

Viewing Instructions:
Click on the Audio link below to begin; click Next to go to next chart. Before clicking on the audio link, allow the chart to fully load. If the charts do not download completely, right mouse click and choose "refresh".

The oscillator at the bottom of the chart is the Bressert Double Stochastic. It was designed to identify cycle tops and cycle bottoms, and to generate mechanical buy and sell signals to trade the bottoms and tops. By plotting it on a chart, you can quickly see many of the cycle tops and bottoms. Cycle bottoms tend to occur as the DoubleStoc oscillator makes a bottom and turns up. All five of these cycle bottoms in the chart occurred at or near the bottom of the DoubleStoc oscillator. The cycle tops occurred at, or following a downturn in the DoubleStoc. The cycles that trade the best will show the cycle bottoms the best with the DoubleStoc. All markets go through periods of relatively consistent cycles and time periods when the cycles are hard to identify. In this example the cycles are quite easy to identify. Indeed, the S&P; Index is one of the better cycling markets.