Cyclic Analysis: A Dynamic Approach to Technical Analysis

“Cyclic Analysis” by J. M. Hurst is one of the most important works ever produced in the field of technical market analysis. In this masterful volume, Hurst presents the essential principles distilled from his groundbreaking Wave Theory of Price Action and decades of research into the cyclical structure of financial markets. Drawing on physics, engineering, nonlinear systems, and spectral analysis, the book provides a rigorous explanation of how market prices evolve through the interaction of harmonically related waves that follow measurable, predictable behaviors.

From the earliest pages—including the author background on page 6, documenting Hurst’s engineering and aerospace systems origins, his work with digital computers, and his discovery of spectral signatures in price data —the book establishes a scientific foundation for cycle-based market analysis. Hurst demonstrates that equity prices are not random; they are governed by consistent wave functions whose periods, amplitudes, and phases can be identified and projected forward with powerful predictive implications.

Across the chapters, the reader is introduced to the nominal cyclic model, harmonicity, proportionality, synchronicity, and variation—concepts illustrated through diagrams such as the wave interaction figures on pages 12–17 . Hurst then builds toward his most influential breakthroughs: Future Lines of Demarcation (FLDs), Valid Trendlines (VTLs), formal phasing analysis, and the cascade principle, which collectively form a complete, quantitative system for forecasting turning points, trend direction, and price objectives.

By combining cyclical wave structure with risk-limit logic, Hurst constructs a fully integrated trading framework capable of selecting optimal opportunities, quantifying risk-to-reward ratios, and projecting future highs, lows, and ranges before they occur. Case studies such as the DJIA 18-month projection examples on pages 32–34 illustrate these concepts with exceptional clarity .

This edition—republished by Traders Press—also includes testimonials from prominent market technicians (pages 43–44), underscoring the enduring influence of Hurst’s methodology. For the serious analyst, this book provides not only theory but a step-by-step roadmap into one of the most advanced timing systems ever developed.

✅ What You’ll Learn:

• The scientific foundations of wave-based market behavior and periodicity.
• The eight Basic Principles of Cyclicality and how they govern all price movement.
• How to interpret nominal wave periods, spectral signatures, and harmonic structures.
• How to perform Formal Phasing Analysis (FPA) to identify active market cycles.
• How to use Valid Trendlines (VTLs) to isolate waves and confirm cycle events.
• How Future Lines of Demarcation (FLDs) forecast price-reversal timing and amplitude.
• How the cascade principle enables prediction of major moves using shorter-wave signals.
• How to quantify risk, profit potential, and PR ratios to structure high-probability trades.
• How to integrate cycle methods into a full trading system for stocks and commodities.

💡 Key Benefits:

• Provides the clearest scientific foundation for technical analysis ever published.
• Converts market structure into measurable, projectable components.
• Enables forecasting of both timing and magnitude of future price moves.
• Offers a fully quantitative method for risk control and trade selection.
• Bridges modern cycle research, engineering signal theory, and practical trading.
• Forms the intellectual backbone of many modern cycle-based systems and timing models.

👤 Who This Book Is For:

• Advanced analysts studying cycle theory, market timing, and price forecasting.
• Technical traders who rely on structure, mathematics, and systematic evaluation.
• Researchers seeking a scientific explanation for recurring patterns in markets.
• Professionals who want an integrated method for trend evaluation, timing, and price projection.
• Traders studying Elliott Wave, Gann, spectral analysis, or statistical cycle methods.

📚 Table of Contents:

• WAVE FUNCTIONS AND RELATIONSHIPS IN PRICE MOVEMENT
• THE INTERACTION BETWEEN WAVES AND FUNDAMENTAL EVENTS
• THE QUANTIFICATION OF TRENDS USING WAVE CONCEPTS
• PREDICTING PRICE REVERSAL TIMING
• PREDICTING THE EXTENT OF PRICE MOVES
• THE CASCADE PRINCIPLE
• RISK-LIMIT LOGIC
• A COMPLETE TRADING SYSTEM

Cyclic Analysis: A Dynamic Approach to Technical Analysis By J. M. Hurst