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Mikula Forecasting
Company: Strategy #15:
Mirror Cycle
====================
Written by: Patrick Mikula CTA
Copyright (c)2003-06 by Patrick Mikula All Rights Reserved.
(Please to not copy or foreword this article).
Mikula Forecasting Company
P.O. Box 152672
Austin, TX 78715-2672
USA
www.MikulaForecasting.com
support@MikulaForecasting.com
====================
This strategy will discuss using the Mirror Cycle
to forecast future market swings. This method is based on
the "Adam Theory of the Markets" but now allows the starting
bar to be changed. One of the important forecast principles
I have talked about before is that the best predictor of the
near future is the recent past. This method allows you to
select the starting point for the Mirror Cycle which then
projects the recent past into the near future. On the chart
below the starting point for the Mirror Cycle is in the
bottom left of the chart. This is a chart for Merck symbol
MRK. After the starting point the past cycle is projected
foreword. Notice that the market swings on MRK were
similar to the forecast Mirror Cycle.
The chart below show the index QQQ on a 15 minute
time frame. The starting point for the Mirror Cycle is a
swing bottom on the lower left of this chart. A pivot top or
bottom is usually the starting point that is selected when
using this method. After the starting point, the Mirror
Cycle is projecting the swings from the recent past into the
near future. Notice that the market swings were similar for
the projected Mirror Cycle swings.
MORE:
To see more examples of this strategy read the
version of this article on the MarketWarrior
owners page.
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Mikula Forecasting Company