As the name indicates, every market will feature a few cycles that are both reliable and persistent. What makes them truly dominant, however, is the fact that they are evident even in the face of strong trends or random influences.
These dominant cycles can be broken down further according to their relative lengths. Classification by length allows analysts to use standard techniques for studying markets – working from the long-term picture down to the short term, where day to day, and hour to hour trading decisions are made. This allows us to always be mindful of, and keep an eye on the long-term influences, and trade the shorter-term cycles in the long-term direction of the market.