The Gyclic Forecast PREDICTING WITH PERIODIC NUMBER CYCLESINTRODUCTION In this special report you will learn about one of the most ac- curate: forecasting tools that has ever been developed for predicting trend changes in stocks and commodities. Very few people have ever heard of "periodic number cycles," and even fewer have seen them in action or know how to use them. ‘Yet periodic number cycles are the key to understanding and anticipating the unexpected trend reversals which make trading the stock and commodity markets so difficult. There is a fundamental difference between a market analysis based upon periodic number cycles and one based upon more traditional methods of cycle analysis. Ordinary cycles, such as those derived from a Fourier decomposition of market prices, are waves of fixed time length and price amplitude. Thus one usually identifies an ordinary cycle by its length, as for example the "8 week cycle” or "4 year cycle," etc. Unlike ordinary cycles, periodic number cycles have variable time length; in fact repetitions of the same "cycle" take successively longer periods of calendar time. Thus periodic number cycles cannnot be identified by any fixed wave length (they have none); instead a number cycle is identified by the original major top or bottom which started the series of number cycles to which the cycle in question belongs. You will begin to appreciate this as well as many of the other unique features of number cycles as you study this teport. Im Chapter 1 you will learn how to construct the Octagon Chart. This is a table which assigns, explicitly or implicitly, an angle between 0° and 360° to every positive whole number (like 1, 2, 3, 4, ~--4 65, etc.). This correspondence between angles and numbers is the Key to the construction and use of periodic number cycles. Chapter 2 explains the simplest of the forecasting tools you will learn. This is the method of Natural Angles which uses only weekly and monthly time measurements to predict the specific days on which trend changes : are likely. A more sophisticated forecasting method is explained in Chapter 3. There you will discover how to directly compare time measurements to price measurements through the Octagon Chart and thus arrive at predictions of future trend reversal dates. Chapter 4 dis- cusses several methods for using the Octagon Chart to project future support and resistance levels and thus to estimate the extent of the current move. In this chapter you will also learn about calendar support and resistance levels and how they can be used to predict both the prices and times of future trend changes. Chapter 5 explains how you can combine what you have learned about periodic number cycles with some simple trend following, technical rules to improve your trading results, Finally, in the appendix you will find not only a number of market charts referred to in the text but also lists of historical tops and bottoms in the Dow industrials, May soybeans, February pork bellies, March sugar, and May wheat. These tables provide all the information you need to get started with your oxn number cycle analysis. wis. It's very likely that you will find the ideas in this report strange and exotic. But I speak from experience when I say they really do work. Try them and I think you will be amazed at the help periodic number cycles give you in timing market trend changes! Carl A. FutiaChapter 1: Ghapter 2: Chapter 3: PREDICTING MARKET TRENDS WITH PERIODIC NUMBER CYCLES ©1982 the cyctic Forecast P.O. Box 215 Morris Plains, NJ 07950 Table of Contents The Octagon Chart 1.1 The Basic Idea .......... 1.2. Constructing the Octagon Chart 1.3 What It All Means ...........06 1.4 Constructing Other Periodic Number Tables ........s004 The Natural Angle Method ... Data Required to Get Started . The Weekly Natural Angle Method . Time Saving Hints ... The Weekly Natural Angle Method Applied to Stock Prices .......-2.e4e0005, 2.5 A Soybean Example ....... : 2.6 The Monthly Natural Angle Method ........ 2.7 Application to March Sugar ...........00- The Price Angle Method .... 3.1, Finding the Price Angle ......... 3.2 Price Angles for Interest Rate Futures seteeeee 3.3. The Weekly Price Angle Method ........... 3.4 Applications to the Dow Industrials ... seeeeeeee 3.5 Applications to Pork Bellies .... 3.6 The Monthly Price Angle Method, . 18 20