Introduction to Hurst Cycles

Hurst’s Cyclic Principles

The following video from Sentient Trader’s David Hickson explains the basics of trading with Hurst Cycles. This is a good introduction to the first concepts and I encourage you to explore more, firstly by reading ‘Profit Magic of Stock Transaction Timing’ and Chris Grafton’s excellent ‘Mastering Hurst Cycles Analysis. Both are available on Amazon. Hurst’s most seminal work, the Cyclitec Cycles Course, in which he introduced the FLD, is incredibly hard to get hold of! However by watching videos and reading reports by cycle advocates online you can begin to learn this superb and elegant definition of market motion.

Hurst’s Nominal Model

As a result of Hurst’s research, conducted prior to the publication of ‘Profit Magic of Stock Transaction Timing’ and refined in his cycles course, a ‘Harmonic Nominal Model’ was presented. This outlined the underlying spectral and harmonic nature of price movements in most financial instruments. This model is key to performing a phasing analysis from which both the FLD and VTL can be applied to price action. The nominal model is described below:

NOMINAL CYCLE WAVELENGTH (DAYS) AVERAGE WAVELENGTH
18 Year 6547.2 17.93 Years
9 Year 3273.6 8.96 Years
54 Month 1636.8 53.77 Months
18 Month 545.6 17.93 Months
40 Week 272.8 38.97 Weeks
20 Week 136.4 19.48 Weeks
80 Day 68.2 68.2 Days
40 Day 34.1 34.1 Days
20 Day 17 17 Days
10 Day 8.5 8.5 Days
5 Day 4.3 4.3 Days

Intraday Nominal Model

Thanks to the work performed by David Hickson at Sentient Trader, Hurst’s Nominal Model has been updated for intraday price action. Analysis recreating Hurst’s original technique was applied to intraday data and the following harmonic nominal model was produced:

NOMINAL CYCLE WAVELENGTH (DAYS) AVERAGE WAVELENGTH
2 Day 2.2 2.2 Days
1 Day 1.11 26.67 Hours
5 Hour 0.22 5.3 Hours
160 Minute 0.11 160 Minutes
1 Hour 0.037 53.3 Minutes
30 Minutes 0.018 26.67 Minutes
15 Minutes 0.009 13.3 Minutes
7 Minutes 0.0045 6.6 Minutes
3 Minutes 0.0023 3.3 Minutes

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