Currency Market - Japanese Yen Highlight #3
"Linear Time Cycles" signal long Japanese Yen position 1 day after new 7 year low and prior to sharp 4 day rally.
(COMMENT # 450)
UPDATED 19980616
COMMENT 1998-450
1. Now let's look at the "King Kahuna" of the markets right now on page 335 of "The 1998-99 $upertrader's Book of Linear Time Cycles".
2. Is this linear cycle index (the solid line) on the money or what?
3. Same for the histogram (the "boxes" just below the chart).
4. Now let's turn the page to the weekly information on page 337.
5. Obviously, the one that's "hot" is the monthly projection.
6. Hence, with price moving down into the projected lows, the monthly is the one we want to rely on while discarding the weekly projection.
7. Can you see how price becomes the final arbiter with respect to the projection?
8. We make our decision at that point in TIME when we arrive at the projected turning point.
9. If price is not acting as it should, we ignore the linear cycle projection as we have done with the weekly in this case.
10. It's that simple!
11. (see the second "MOST IMPORTANT" tip on page 21 of the "How To" section).
12. This market is listed on page 312 of "The 1998 $upertrader's Almanac - 1st Half Edition".
13. Note, on page 236, the importance of the anniversary dates to this market.
14. If for no other reason, this stunning "cluster" of points suggests, at the least, a "pause" in the downturn.
15. Further, let's look at the last 3 major down legs in this market (cash intraday prices).
16. The first lasted from 970611 to 970806 and declined 624 points (SQ 25 = 625).
17. The second lasted from 970808 to 980105 and declined 1287 points (2 X 624 = 1248).
18. The third lasted from 980205 to 980615 (to date) and declined 1306 points (close to 1287 and 100 X FIBONACCI # 13).
19. The third leg has lasted 89 trading days (FIBONACCI # = 89).
20. The first leg lasted 39 trading days (3 X FIBONACCI # 13 = 39) and 56 calendar days (FIBONACCI # = 55).
21. 89 / 39 = 2.615 (SQ PHI = SQ 1.618 = 2.618).
22. The second leg lasted 150 calendar days (FIBONACCI # = 144).
23. The entire decline has lasted 369 calendar days (FIBONACCI # = 377).
24. 383 calendar days would be more exacting as 56 X 6.854 (4th POWER of PHI) = 384 which would also be the 144th calendar day of the third leg.
25. In the third leg, the breakdown is as follows;
26. The first portion declined 374 points (FIBONACCI # = 377), the second portion declined 615 points (FIBONACCI # = 610), while the third declined 907 points (FIBONACCI # = 987).
27. In calendar days, the third portion has lasted 63 calendar days or 2 X the 32 days of the second portion.
28. In trading days, the third portion has lasted 44 trading days or 4 X the 11 days of the first portion.
29. It's not just that such interesting, proportionate numbers are evincing themselves at this TIME in this particular market, it's that one can look at several markets in similar manner and see the same, across-the-board turning points.
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