Copper (HG) - 14th May 2024 | @ 161 Days
'A' class signal detected in High Grade Copper (HG). Running at an average wavelength of 161 days over 14 iterations since April 2018. Currently approaching a peak
ΣL Cycle Summary
Forming the center frequency of interest in the outstanding spectra of Copper is this wave at around 160 days average wavelength, sampled below since April 2018. Flanking to the faster side is the recently reported wave around 77 days and to the slower side the component around 280 days which troughed back in February. The longer component is providing the majority of the power in price action and all are starting a peaking sequence over the next few months. Returning to the component around 160 days, which has been beautifully stationary and exhibits clear spectral spacing, a peak is near. The most recent trough was subtle and bullish, likely occurring in February alongside the larger wave, putting the next peak close, estimated to be at the end of May at the current average wavelength. This may also be the price peak of the longer wave (@ ~ 280 days), which would be subtly left translated in that scenario.
Time Frequency Analysis
Time frequency charts (learn more) below will typically show the cycle of interest against price, the bandpass output alone and the bandwidth of the component in the time frequency heatmap, framed in white. If a second chart is displayed it will usually show high-passed price with the extracted signal overlaid for visual clarity.
High-Pass Filtered Price
Our high-pass filter isolates the component of interest from underlying trend and presents buy and sell threshold envelopes (green and red). The envelopes are based upon the amplitude envelope of the bandpass filter +- 2 standard deviations. Breaches of either by high-passed price is a strong reversal action signal.
Current Signal Detail & Targets
Here we give more detail on the signal relative to speculative price, given the detected attributes of the component. In most cases the time target to hold a trade for is more important, given we focus on cycles in financial markets. Forthcoming trough and peak ranges are based upon the frequency modulation in the sample (learn more).
Detected Signal Class: A - learn more
Average Wavelength: 160.59 Days
Completed Iterations: 14
Component Yield Over Sample: 152.61% - learn morePhase: Peaking
FM: +- 13 Days
AM: 0.03384
Next Trough Range: 3rd - 31st August, 2024
Next Peak Range: 22nd October - 17th November, 2024
Sigma-L Recommendation: Early Sell
Time Target: ~ 18th August, 2024
Current Signal Phase
This is ‘how far along’ the cycle is in it’s period at now time and is related to the predicted price action direction.
Current Signal Frequency Modulation (FM)
This is how much, on average, the signal detected varies in frequency (or wavelength) over the whole sample. A lower variance is better and implies better profitability for the component. Frequency usually modulates relatively slowly and over several iterations.
Current Signal Amplitude Modulation (AM)
This is how much the component gains or loses power (price influence) across the sample, on average. Amplitude modulation can happen quite quickly and certainly is more evident than frequency modulation in financial markets. The more stable the modulation the better.