Silver: Hurst Cycles - 21st November 2022
Silver continues to display varying amplitude but correlated frequency in it's periodic components vs gold. We look at the most recent lows and consider the case for an 18 month component trough
Tools required: Nominal Model | FLD | FLD Trading Strategy | FLD Trading Strategy (Advanced) | Principle of Nominality | Underlying Trend
Analysis Summary
Silver, although correlated very much with gold, has been markedly more volatile in each swing of the 80 day ‘nominal’ component recently (~ 54 days wavelength). The low in late September and built through October is possibly of 18 month magnitude.
Utilising a time frequency analysis from 2005 to nowtime, in a similar manner to our recent Gold report, yields what is likely the 18 month nominal component, running at around 16.8 months over the sample. Indeed in Silver the increased amplitude, even at this longer component, is helpful in identifying the presence of this wave and can be used to assist commonality. We can confidently say that a component of between 14-17 months in duration is present in both gold and silver. This component can be notionally attributed to the ‘18 month nominal’ component for ease of reference, as per Hurst…