These are all cycles we can understand and accept because we have an understanding of the underlying causes of these cycles.
Cycles are a very powerful analytical tool for identifying trends and trend reversals.
The fact that an analyst is aware of a major bottom in a dominant cycle, can add confidence to the decision making process. Cycles and their turning points are used by short term traders and investors in the stockmarket. Each dip or peak is a short term cycle within a long term cycle, each could be equated as a single wheel rotating within the confines of a larger wheel, ie wheels working within wheels. As long as the larger wheel is rolling, the trend continues. This article is aimed at the beginner and try's to show by way of simple examples that cycles exist in our local stockmarket in their various forms.