🧠 One of the things I learned from my PhD was that under strong emotions humans learn and memorize very well - but they can't effectively recall their knowledge in this state.
❌🧠And the opposite - when they are calm they can recall easily what they know but it's hard to learn something new.
🎉📚So I decided to use the emotions from the
$XRP pump for something useful, to explain really briefly how Ichimoku's Time Cycles work and how they helped me call the last
$XRPBTC bottom on its exact day exactly when the giga pump started for the first time since 7 years.
Some people were asking since long time about the Time Theory - it deserves a separate educational thread and please keep in mind that it's way more extensive than what I can post here.
But through this practical example I want to demonstrate a common and useful case for it as briefly as I can.
So here we go:
🫴The time cycles idea, assuming we are looking for a cycle low or high (because Ichimoku can use the time cycles also for something else) is quite simple:
We count the days between the cycles and measure their length. We can measure in all four ways: high to high, low to low, low to high or high to low.
🟢If a high/low happens on a date for a valid cycle low and high, we can assume that it will form a swing high/low and the market will reverse.
❌If it doesn't happen on a valid date we can assume the bottom/top is not in until the earliest valid dates for that comes.
4⃣Ichimoku has 4 models for spotting and forecasting time cycle patterns.
But from all 4 models Kihon Suchi is by far the most important, reliable and prevalent model.
The Kihon Suchi model has two rules for a low or a high to be a valid cycle low/high:
1⃣ No gap between the cycles (or just one cycle)
2⃣ The cycles length must be any Kihon Suchi number (with the acceptable deviation +-2).
The Kihon Suchi numbers are special numbers which took decades of research to be discovered and are naturally appearing in the time cycles in all assets.
Theoretically we can generate custom Kihon Suchi numbers using the guidelines formulas, but over the years with practice the following KS numbers have been established as the most common ones:
9, 17, 26, 33, 42, 51, 65, 76, 83, 97, 101, 129, 172, 200, 257, 676.
🤯As you see on the
$BTC chart below, they tend to magically appear a lot of the time on the chart on many levels (zoom-in/zoom out, major/minor cycles).
It even feels like someone has done this on purpose but it occurs naturally:
So for example if we get a cycle 19, this is 17+2 so it's a valid low and it can hold. But if we get 20, we look for the next KS number which is 26 and expect this cycle (or 9 as it's the lowest one).
So now let's look at what the high timeframes were telling us on
$XRPBTC and how the time cycles made it clear that 12th of November was not only a valid cycle low, but a huge chance for the final low.
🗓️🗓️🗓️On the monthly, June was a 42 cycle which is an exact KS number so we assume it's a valid low - and the final bottom may be in.
However, after this the chart didn't go straight up but dipped and started to form another low.
So assuming that the 42 monthly cycle holds, we needed just to find the bottom of the higher low.
🗓️🗓️For this, we zoom-in at the weekly cycles and we see three cycles: 172, 9 and 24. 172 and 9 are exact KS numbers, 24 is 26-2 so acceptable deviation from 26.
So all these weekly lows were valid and the low could have been set within this week, or up to 4 weeks ahead (as 26+2 extends up to 28).
🗓️So now to be more precise as 4 weeks is too long period of time, we zoom into the daily cycles.
And there we see a confluence between three big cycles: 40, 131 and 100. With the acceptable +-2 deviation, they give us 42, 129 and 101 all of which are KS numbers.
Well pretty much that't it.
TA is never 100% it's always about probabilities and exactly for this reason we seek as much confluence we can.
On the 12th of November we had a confluence between multiple time cycles on three timeframes, price reaction and rising volume - so it was obvious that this should be the bottom and the big run was finally starting.