Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition

Cycles

Price cycles emerge from the data when you look for them. Most futures traders use an annual cycle called seasonality. If you are trading corn, you know that supply increases at harvest time and that extreme weather conditions during the growing season may limit supply. There may also be links between corn and livestock prices because corn is used for feed.

Cycle analysis can be complex, so this is not covered as part of the main focus of this book. There is more about cycles in Chapter 34, “Cycles.”