Crude is exhibiting amazing Time Cycles and turning areas right from Daily to Hourly time frame.
In this research we will focus on analyzing the Cycle period and understanding their forecasting ability.
MCX Crude (INR) Futures Chart – 115 Days Time Cycle
Crude Oil 73 Hours Time Cycle
We used the concepts of Hurst’s Time Cycles and found actual cycles working on Crude Oil.
Crude Oil 115 Days Cycle: We can see that all the major lows formed on Crude Oil is near 115 days Time Cycle. This includes the low formed during the crash seen in April 2020 when Crude in USD turned negative cited to the Oil glut created as a result of ongoing Pandemic. But if one were to follow this cycle period it very clearly suggested that the upturn was imminent when majority were focusing on news and it worked out extremely well. The recent low was also near to this cycle.
Crude Oil 73 Hours Time Cycle: After analyzing the bigger cycle the short term cycles can be identified. The above chart clearly shows important turn areas can be identified on Crude Oil every 73 hours. It is working so extremely well that traders can use this simple cycle analysis and time their trades accordingly.
References for above research: Book – Effective Trading in Financial Markets Using Technical Analysis by Smita Roy Trivedi, Ashish H. Kyal. Get your copy Here
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