Cycloops Sell Signal Pattern Pairs

By: Gerald Hoopes | Sun, Sep 7, 2003
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According to my August 31 communication, the 8 latest deep and very deep Monthly DJIA Coppock Curve buy signals seem to pair off on Monthly DJIA line charts, implying that 24 months of POST-signal DJIA behavior is somehow ruled by 24 months of PRE-signal DJIA behavior, thereby suggesting that the DJIA is at such times essentially an intricately lagged function of itself.

My June 16 communication mentions Cycloops phase space and the 6 sell signals generated by it since the early 1960s. Those 6 sell signals are somewhat complementary to the 8 latest deep and very deep Monthly DJIA Coppock Curve buy signals.

As shown in my July 10 communication, those 6 sell signals tend to sort themselves into 2 time path patterns in Cycloops phase space when the 100 trading days prior to each signal are highlighted.

However, when the 24 months before and the 24 months after those same 6 sell signals are depicted on Monthly DJIA line charts (with the nearest Monthly DJIA close serving as a proxy for a particular sell signal date) the resulting time paths appear to pair off into 3 patterns.



As with Coppock Curve buy signals, this pairing off by Cycloops sell signals implies that 24 months of POST-signal DJIA behavior is somehow ruled by 24 months of PRE-signal DJIA behavior, suggesting that the DJIA is at these times too essentially an intricately lagged function of itself.


 

Author: Gerald Hoopes

Gerald Hoopes

An explanation of the Coppock Curve can be found at How to Calculate the Coppock Curve. An archive of Geralds comments can be found in the forums at www.longwaves.net.

This analysis is for academic purposes only and must not be construed as investment or trading advice.

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