Davies analyzes price direction using trading bands built around moving averages with different time periods as a form of cyclical analysis and uses the commodity channel index as a timing tool with the cyclical analysis to assist in generating trading opportunities.
Cycles exist in financial markets.
That is accepted. Millard's concept of CCA is elegant but simple and I use it to predict time and price opportunities in the market. It is a powerful method to indicate future periods of exceptional probability of a price reversal. Once the opportunities have been identified, other means can be used to pinpoint the timing of entry or exit. In this article, I will outline Millard's method of channel analysis and then describe how the CCI can be used to pinpoint the time for entry and exit.