Trough or Peak Analysis? Pick One!

When performing a formal phasing analysis we can either assume troughs are synchronised or peaks, but generally not both. Let's see why in this article.

A trough AND peak phasing analysis of gold. Both are compelling but only one should be used and we must look at subtle clues to decide. It is important to know that in this analysis each phasing is distinct and seperate - they are not related to each other at all - as we will learn below.

Whilst it is true the majority of phasing analysis performed on Sigma-L is assuming synchronised troughs it is always possible to choose a peak phasing if the instrument looks suitable. The general school of thought is that in stockmarkets one should phase the troughs and in some metals like gold and silver one should phase assuming peaks are synchronised.

This thought process is based around some of Hurst’s work (although Hurst phased copper at the troughs in the Cycles Course) and some of it is just based on what everyone else is doing! The proper approach should be to assess the chart and look carefully at the shape of troughs and peaks. Are the troughs generally sharp and precise and the peaks rou…