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USDCAD - 1st November 2023 | @ 78 Days | + 3.22%
Last trade: + 3.22% | 'A' class signal detected in USDCAD. Running at an average wavelength of 78 days over 14 iterations since January 2021. Currently peaking.
ΣL Cycle Summary
There is not a lot to add about this component that has not been stated already. It is simply sublime and a remarkable example of periodicity in a financial market. For related CAD pairs and this wave, please see our composite analysis posted recently.
Summary of the most recent trade enacted with this signal and according to the time prediction detailed in the previous post for this instrument, linked below.
Type: Buy - USDCAD 19th September 2023
Entry: 19th September 2023 @ 1.34485
Exit: 1st November 2023 @ 1.38815
Current Signal Status
Defining characteristics of the component detected over the sample period.
Time Frequency Analysis
Time frequency charts (learn more) below will typically show the cycle of interest against price, the bandpass output alone and the bandwidth of the component in the time frequency heatmap, framed in white. If a second chart is displayed it will usually show high-passed price with the extracted signal overlaid for visual clarity.
Current Signal Detail & Targets
Here we give more detail on the signal relative to speculative price, given the detected attributes of the component. In most cases the time target to hold a trade for is more important, given we focus on cycles in financial markets. Forthcoming trough and peak ranges are based upon the frequency modulation in the sample (learn more).
Phase: Peaking / Peaked
FM: +- 2 Days
Next Trough Range: 11th December 2023 - 15th December 2023
Next Peak Range: 18th January - 22nd January, 2024
Sigma-L Recommendation: Sell
Time Target: ~ 13th December, 2023
Current Signal Phase
This is ‘how far along’ the cycle is in it’s period at now time and is related to the predicted price action direction.
Current Signal Frequency Modulation (FM)
This is how much, on average, the signal detected varies in frequency (or wavelength) over the whole sample. A lower variance is better and implies better profitability for the component. Frequency usually modulates relatively slowly and over several iterations.
Current Signal Amplitude Modulation (AM)
This is how much the component gains or loses power (price influence) across the sample, on average. Amplitude modulation can happen quite quickly and certainly is more evident than frequency modulation in financial markets. The more stable the modulation the better.