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For those of us who've been looking into Clyde Lee's SwingMachine, I thought
i'd do up a chart to throw some light on Fourier analysis used in
conjunction with Clyde's predictions.
The chart on the top left is a 48 day linear regression angle on a current
Corn chart. Under most circumstances, market action will move from side to
side of the line.
The bottom left chart uses 48 days of the same data to assess waves and
wavelets (The charts aren't quite lined up).
The top right and bottom right charts use 144 days of data as a lookback
period. Some of the waves seem to be slightly later than the 48 day model,
but are still generally in sync.
I use 48 and 144 day periods to look back ( in two time intervals) at short
and longer term cycles of approximately 2 and 6 months.
A strong downward cycle appears to be looming for the corn market if the
cycles relationships are indeed in harmony.
Based on harmonics theory, ratios of prime numbers come up quite frequently,
and, given sufficient data, the next number to input in Clyde's SwingMachine
would be 288.
I'm not a Fourier or mathematics specialist, so i'd love to know if anyone
has a better method for reading regression or Fourier analysis.
Over the past few weeks, Clyde's program has been suggesting a further drop
in oil prices. Even with the fundamentals relating to the Iraqi crisis,
SwingMachine managed to call oil on the correct side.
Dave
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