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90-Day Cycle

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90-Day Cycle: The basic function of the anniversary date is to identify the dates on which the market is likely to top or bottom in the future.  The most common anniversary date cycle is the 90-day cycle. As the market approaches a 90-day top, the trader should watch for a signal top formation, as this will combine the best of time and pattern when forecasting the top. Conversely, as the market approaches a 90-day bottom, the trader should watch for a signal bottom formation, as this will combine the best of time and pattern when forecasting the bottom.

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