Projecting in Price
In part 1 of this series, we discussed the basic concept of cycles and what they mean in the context of technical analysis. In part 2, we showed how the team at askSlim uses cycle analysis to project a security’s movement in time. Now, in part 3 of this series, we are going to showcase how we can divulge even more information, from what started as a blank chart, in order to project a security’s movement in price.
*Note: To show how we go about projecting in price, it is necessary that we introduce some previously unmentioned terms and techniques. These ideas are powerful, and vast enough that they deserve their own individual explanations. So bear in mind that, though we will mention them here offhandedly, these new concepts are by no means simple, and require significant insight in order to master.
Ok, now for the good stuff…
Getting Price More Involved
In addition to what was on this chart of Silver Futures at the end of part 2, we’ve added support levels, shown by the green horizontal lines, so that we can start to project in price. Some more information we’ve included refers to a new term, translation, which we use to describe either a “Right-hand” or “Left-hand” translation. This is when we start to really take advantage of the “ideal cycles” that we’ve drawn on this chart. Here’s how:
When a symbol “peaks” before the peak of the ideal cycle, we call that a Left-hand Translation, as it peaked to the left of the ideal cycle peak.
When a symbol “peaks” after the peak of the ideal cycle, we call that a Right-hand Translation, as it peaked to the right of the ideal cycle peak.
Generally speaking, we see left-hand and right-hand translations as bearish and bullish indicators, respectively.
Now, find the two spots on the chart where we’ve added “Cycle low support Breakdown negative“. What both of these instances show is price breaking through a key support level and setting a new low “mid-cycle”. When this occurs, it becomes very likely that a new low will be made when the cycle eventually does hit its trough.
Of course, it isn’t enough to project that a new low will likely form eventually, so the next task is to find a range for the upcoming “projected trough“, as shown on the far right of the chart above. This range is calculated by performing “Swing-High/Swing-Low Analysis”, which is a topic we cover extensively for our members.
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Advanced Technical Analysis
In addition to what we’ve added on previous charts, this iteration contains information that we’ve discovered through candlestick and consolidation pattern analysis. This additional information is both powerful and very nuanced, so much so that to explain it here in written form would not do it justice.
So, to finish off this series, we’ll refer you to the expert himself, Steve “Slim” Miller, to explain below.
Thanks for reading!