TOP IS NOT IN YET (MORE UPSIDE AFTER THE MINOR CORRECTIONS)We discussed the 5-year bull cycle that starts off every 20-year cycle. We identified that the current 5-year bull cycle will be one of the wildest in the history of the DJIA market by virtue of the current energy level within the log expansion. We will start a new progressive series to discuss the current 20-year cycle in motion.
First we will look closely at these three different 20-year cycles
From the three cycles we can identify a peculiar recurring structure, that is, after the approximately 5th year top we have a wild decline that averagely bottoms below the starting price. We will not dwell much on this cycle as it's not the current cycle in progress. Between these cycles is an (Alternate Cycle) that also has a similar fractal construction.
The first two alternate cycles directly lie between the cycles identified earlier and have a similar fractal. The most striking identity of these alternate cycles is that the origin point is the lowest point within the 20 year trend. The correction from the 5th year top is not so steep and never goes below the origin
The 1942/1962 cycle lies between the 1921/1942 and 1962/1982 cycles
The 1982/2002 cycle lies between the 1962/1982 and 2002/2022 cycles
This means the next alternate 20-year cycle is the 2022/2042 cycle which will lie between 2002/2022 and 2042/2062 cycles. From the internal construction of this cycle we can dive deeper and model the structure forward in both price and time. Example, the vertical price axis for the 1942/1962 cycle was (+648.61 pts) and total horizontal time elapsed was (+1052 wks).
We have a (648.61 x 1052) structure showing a perfect golden ratio of price and time
(1052 / 648.61) = 1.6219
1982/2002 cycle had price axis = 1098.03 pts and time = 1052 wks
We have approximately a 1098.03 x 1052 square of price and time
By observing the cumulative growth pattern we can make projection of the current cycle in progress. We would go through the growth gradually and identify price and time resistances as price action progresses. Please check back as we build step by step the growth structure of the current cycle.
Trade safe
