Sigma-L: Expert Hurst Cycles Insight

A major market top forms in Bitcoin (BTCUSD), back in April 2021. The use of VTLs and FLDs to confirm price peaks and troughs form one of the tools we use frequently in Hurst Cycle analysis.

Sigma-L brings the power and robust nature of Hurst Cycles analysis to traders/investors in a new way. Expect a compact yet comprehensive email newsletter and website format, penned by an expert in the application of this wonderful technique.

Originally proposed by pioneering engineer JM Hurst in the 1960s and 1970s, Hurst Cycles are often bewildering for the average investor/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.

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.

Hurst would have really enjoyed the extra power of today’s modern computers. Here a bespoke time frequency analysis is applied to USDCAD. This kind of analysis is included in all reports on Sigma-L and is also available for custom, bespoke analysis, on request.

Hurst Cycles allows the investor or trader to leverage the predictive power of periodic functions present in financial markets. Hurst Cycles are completely unique in approach and comprise a robust set of action signals, risk management and price action methodology. The edge a trader or general investor can gain from a deep knowledge of this technique 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

The RUSSELL 2000 (RUT) at the 4 hour resolution starts a move upward from the 40 day nominal low in late August 2021. This was a tremendous ‘bear trap’ that was easily identified using Hurst Cycles

Updated weekly, subscriptions to Sigma-L cover a range of popular instruments:

Stockmarkets (S&P500, DJIA, FTSE and more)
Forex (USDCAD, USDJPY, EURGBP, AUDNZD, Dollar Index and more)
Cryptocurrency (Bitcoin, Ethereum and more)
Precious Metals (Gold, Silver, Uranium and more)
Energy (Oil, Natural Gas)
Custom phasing analysis on any financial instrument available on request.

Subscribers are emailed the moment a new post goes live and reports on price action with targets in terms of price and time are, naturally, front and center for all instruments.

An 18 month nominal cycle peak forms in Natural Gas futures around October 2021. At the time energy price inflation was subject to rampant coverage in the press. Subscribers were alive to the contrarian viewpoint available only via an expert Hurst Cycles analysis.

Price progresses to the 18 month nominal low due at the end of 2021. Subscribers are kept up to date at crucial points in the cyclical analysis.

Hurst Cycles Software

AUDNZD shows exemplary periodicity at the larger cycle degrees, helping traders to identify major peaks and troughs. Here price begins a large upward move from an 18 month nominal low in September 2021.

AUDNZD in February 2022 having established the 18 month nominal low and moved upwards for weeks.

Although strictly speaking not required to trade/invest using Hurst Cycles analysis, the very useful software Sentient Trader developed by David Hickson, is available for interested subscribers. It will be used for most charts on Sigma-L and removes some of the ‘donkey work’ involved in a full phasing analysis. It is a pattern recognition based software approach (with a nod to the spectral domain) and incorporates the ‘diamond notation’ method espoused by Hurst in the expansive Cyclitec Cycles Course.

Students are encouraged however to perform their own manual full phasing analysis when learning these techniques as no software solution is a black box. The trained human mind is a superior discretionary tool on most occasions!

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 Hurst Cycles and signal processing. Expertly crafted time series analysis of stockmarkets, cryptocurrency, energy, precious metals and more.

People

David F

Full time trading for 8+ years with the majority utilising JM Hurst's cyclic principles and similar signal processing techniques. Often contrary views on markets. Also code financial market based algorithms, play piano when I can and love cricket!