Phasing II: the daily chart and peak translation

Carry the labels down

Once the weekly chart is phased, switch to the daily chart. The weekly lows you labelled are still there, now spread over many more bars. Use them as fixed anchors.

Then keep dividing: between two 80-day lows, find the 40-day low; between those, the 20-day lows. The same halfway rule applies, and the same envelope and FLD checks.

Let measurement help

Dividing by two assumes the textbook ratios hold. Often they roughly do, but not always. A spectral scan measures which cycle lengths are actually present in recent data, so you can check whether your 20-day cycle is really running at 20 days or closer to 16 or 24.

This is where the two schools meet: phasing gives the structure, measurement keeps it honest.

Peak translation

A cycle is measured low to low, so its peak could fall anywhere in between. Where it falls tells you about the longer cycles behind it.

Right translation: the peak comes after the midpoint. The rise lasted longer than the fall, because longer cycles were pushing up. That points to a rising underlying trend.

Left translation: the peak comes before the midpoint. The rise was cut short and the fall dragged on, because longer cycles were pulling down. That points to a falling underlying trend.

Using translation

Watch for a change. A run of right-translated peaks followed by a left-translated one is an early warning that the longer cycles have turned down. It often shows up before price breaks anything obvious.

Translation also helps phasing: if a peak is strongly left-translated in what you thought was a rising market, recheck your labels.

Keep it current

Daily phasing changes more often than weekly. Each new low is a chance to confirm or correct the count. Revisit it whenever a low arrives early, late, or not at all.