Sigma-L: Expert Market Cycles Insight

Sigma-L brings the power of modern signal processing techniques, with a nod to the insight of engineer JM Hurst, to retail traders, funds and institutions.

Expect a compact and frequent email newsletter format, covering major market turning points and penned by an expert in the application and design of signal processing software for financial markets. Check out some of the best signals identified by our techniques in this Wow! signal article.

Proposed robustly by pioneering engineer JM Hurst in the 1960s and 1970s, periodic motion in financial markets is often bewildering for the average trader. Although an attempt was made by Hurst himself to simplify the techniques to a totally practical level in the now rare Cyclitec Cycles Course, many new and enthusiastic students are often disconcerted with the mathematical foundation at the heart of this approach.

Identifying a significant periodic low in Uranium via a composite analysis of several mining stocks and ETFs

Today, innovations in software and signal processing techniques would have amazed Hurst, allowing a huge range of markets to be subjected to this kind of time-series analysis.

An extremely good signal present in the Gold market, at around 55 days average wavelength since March 2021. On each report we give a rating for the signal identified, based upon time-series and signal processing analysis criteria of statistical significance.

Our bespoke time frequency analysis allows the investor or trader to leverage the predictive power of periodic functions present in financial markets. The edge a trader or general investor can gain from a deep knowledge of these techniques will be indispensable.

Here the remarkable cyclicality of the VIX volatility index is highlighted with a wonderful component around 68 days present, amongst others. This kind of visualisation can help identify periodic functions in markets and their relationships to each other over time.

Market Coverage

Platinum with a compelling periodic component around 140 days average wavelength.

Emails are sent out nearly every day covering updates at crucial timing junctures in the following instruments (non exhaustive):

Stockmarkets (S&P500, DJIA, FTSE and more)
Forex (Dollar Index, all major USD, GBP, EUR, CAD and JPY pairs)
Cryptocurrency (Bitcoin, Ethereum and more)
Precious Metals (Gold, Silver, Uranium and more)
Energy (Oil, Natural Gas)

Subscribers are emailed the moment a new post goes live with our time targets and ranges clearly defined, in line with our time frequency analysis.

We also (from March 2023) update a trade report with each subsequent post for full transparency and insight, such is our confidence in the robust nature of this approach. This includes posting losses!

The fantastic signal in Copper Futures around the 79 day mark.

Our Software and Techniques

Our analysis is now given mainly via the microscope of an unbiased time frequency analysis. For more details on this technique please check out our article: Hacking the Uncertainty Principle: Time Frequency

A typical time frequency analysis. In this case the instrument is USDCAD, daily. We identify a component of excellent signal quality around 75 days.

Gold and the component around 300 days from this sample, price is also highpassed.

The component around 80 days in the S&P 500 modulates slightly in frequency and amplitude over time

The CBOE Volatility Index (VIX) also contains a similar periodic component (inverted) to the S&P 500.

DISCLAIMER: This website/newsletter and the charts/projections contained within it are intended for educational purposes only. Results and projections are hypothetical. We accept no liability for any losses incurred as a result of assertions made due to the information contained within Sigma-L. This report is not intended to instruct investment or purchase of any financial instrument, derivative or asset connected to the information conveyed in the report. Trade and invest at your own risk.

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Identify financial market turning points with the power of signal processing and wavelet analysis. Expertly crafted time series decomposition of stock markets, cryptocurrency, energy, metals, foreign exchange and more.

People

David F

Full time trading for 8+ years. Merged JM Hurst's original great insight with modern signal processing techniques. Often contrary views on markets. Also code financial market based algorithms, play piano when I can and love cricket!