Many people have discovered various repeating patterns. Going back many years, among the most famous of these people are Leonardo Bonacci, known as Fibonacci and Leonardo of Pisa (whose identified patterns underpin many forms of what is now called Fibonacci (Fib) ratios); Benoit Mandelbrot who coined the phrase ‘Fractal Geometry’ in his research to discover rough repeating patterns and H M Gartley and the Gartley 222 pattern and other patterns that went on to underpin many of Gartley’s works within the financial markets.
A cycle is a repeating series of events, whether it applies to tides, menstrual cycles, brain wave cycles, rhythms of the heart, financial or economic cycles. One could call the economic phenomenon ‘the circadian rhythm’ of the financial market.
It is obvious that the financial markets do not move in a straight line and it is equally obvious that certain currencies and pairs of currencies move in cyclic patterns. Lee Iacocca who engineered the Ford Mustang is quoted as saying many great things; among them:
- As far back as I can remember, I’ve always been a strong believer in the importance of cycles. You’d better try to understand them, because all of your timing and often your luck is tied up in them
- The ability to concentrate and to use time well, is everything
- The discipline of writing something down is the first step towards making it happen
- Motivation is everything. You can do the work of two people, but you can’t be two people. Instead you have to inspire the next guy down the line and get him to inspire his people
- If you want to make good use of your time, you’ve got to know what’s most important and then give it all you’ve got
- Every business and every product has risks, you can’t get around it
- When the product is right, you don’t have to be a great marketer
- The only rock I know that stays steady, the only institution I know that works, is the family
- People say to me, ‘You were a roaring success. How did you do it?’ I go back to what my parents taught me. Apply yourself. Get all the education you can, but then, by God, do something. Don’t just stand there, make it happen
Trading is a cycle; price moves up and price moves down; it rarely if ever, moves in a straight line. Therefore, understanding cycles and patterns helps us to know when to buy currency, when to buy stock; when to travel and when to protective ourselves against the elements.
Studying harmonic patterns can give you an edge in trading. If you want to get that edge, keep harmonicpatterns.com as one of your favorites and check back from time-to-time, for more information on trading patterns and harmonic cycles.