CyclesTools

Cycles Tool Indicator Summary
The Cycles Tool is a drawing tool used in technical analysis to identify and analyze cyclical patterns in price charts. It helps traders and technical analysts visualize recurring peaks and troughs in a financial asset's price movement over time.

How does it work?
The user defines a cycle by selecting a start and end point on the chart (for example, from one significant low to the next). The tool then projects this time interval of the cycle forward and backward in time, drawing vertical lines to mark the expected start and end of future and past cycles.

Key Features:
Cycle Projection: Automatically draws repeating cycle intervals across the chart.

Midpoints: Often indicates the midpoint of the cycle, which can correspond to a peak (if the cycle starts and ends at a low) or a trough (if the cycle starts and ends at a high).

Custom Measurement Units: Cycles can be measured in different units, such as the number of bars, days, weeks, or even astronomical degrees in more advanced tools.

Harmonics: Allows for the division of the main cycle into smaller harmonic intervals to find shorter-term patterns within the larger cycle.

Averaging: Can average several user-defined cycles to project a more probable future path, based on the average of previous cycles.

In essence, the Cycles Tool provides a framework for traders who believe that markets move in rhythmic, predictable patterns, allowing them to attempt to anticipate potential turning points in price.