|  APR 1994

SIDEBAR: CYCLES, POWER AND PHASE by Technical Analysis, Inc.

CYCLES, POWER AND PHASE by Technical Analysis, Inc. Cycle length is the term most traders use when they refer to cycles. For example, two cycles are plotted, each with two different cycle lengths in sidebar Figure 1. The first cycle has a length of 64 periods; that is, a complete cycle occurs every 64 observations. This period could be hours, days or weeks, depending on what time domain you are working in. The second cycle plotted has a cycle length of 16 periods, meaning a complete cycle occurs every 16 periods. The frequency of a cycle is a measurement of change — that is, how much the cycle changes over a particular time measurement. Frequency (F) is generally inversely proportional to the cycle length (L); that is, F = 1/L. The first cycle in article Figure 1 has a frequency of 1/64 » 0.0156 and the second cycle has a frequency of 1/16 = 0.0625. Converting cycle length to degrees is a simple matter.

by Technical Analysis, Inc.