Page 54 - FINAL CFA I SLIDES JUNE 2019 DAY 4
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Session Unit 3:
13. Technical Analysis
LOS 13.f: Explain how technical analysts use cycles, p.326
LOS 13.g: Describe the key tenets of Elliott Wave Theory and the importance of Fibonacci
numbers., p.326
Cycle theory e.g. the Elliott wave (cycle) theory is the believe that financial markets phenomenon occur
in cycles or that financial market prices can be described by an interconnected set of cycles.
The cycle periods range from a few minutes (a “subminuette” cycle) to centuries (a “Grand Supercycle”).
Business cycles, 4-year presidential cycles,
Decennial patterns or 10-year cycles; 18-year cycles; and 54-year cycles -Kondratieff wave.
