08-13-2025, 01:06 PM
First find a good signal with the System #4 QChartist's Magic Hat Trick System
Then here is an idea to confirm the entry :
Yes — combining a Fast Fourier Transform (FFT) with the Hurst Cycles Spectrometer can be more powerful than using either one alone, but they serve slightly different roles:
1. What FFT brings to the table
If your FFT and Hurst Cycles Spectrometer outputs are synchronized—meaning they both highlight the same dominant cycle lengths at the same time—that’s a pretty strong signal in cycle analysis.
Here’s why:
1. Higher confidence in the cycle
2. More reliable timing
3. Reduced false positives
4. Potential trading edge
In practice, people often set up something like:
If you want, I can outline exactly how to run and sync these two analyses in a single charting workflow so they reinforce each other in real time. That’s where the real power comes in.
Both indicators are available for QChartist (separate canvas)
Then here is an idea to confirm the entry :
Yes — combining a Fast Fourier Transform (FFT) with the Hurst Cycles Spectrometer can be more powerful than using either one alone, but they serve slightly different roles:
1. What FFT brings to the table
- Broad-spectrum detection – FFT quickly identifies all periodic components in data, even weak ones, over a wide frequency range.
- Mathematically rigorous – It decomposes the signal into precise sine and cosine waves, giving clear frequency peaks.
- Fast computation – You can process large datasets quickly and spot new cycle candidates.
- Market-specific filtering – Hurst's approach is tailored to financial series, which are noisy and non-stationary, so it focuses on cycles that actually persist and matter for trading.
- Phase and translation to trading context – It ties cycles to timing models, peak-trough forecasts, and “nominal model” cycle families.
- Noise suppression – It tends to filter out meaningless peaks that FFT might still show.
- Use FFT as a scouting tool to identify candidate dominant frequencies.
- Feed these frequencies into Hurst’s spectrometer for deeper analysis, smoothing, and validation against price action.
- This two-step approach reduces false positives and gives both mathematical rigor and market relevance.
- FFT Stage – Run FFT on your price data → note the strongest frequency peaks.
- Hurst Stage – Use those frequencies as starting points → refine them, track amplitude and phase over time, integrate into trading cycle forecasts.
- Feedback loop – Re-run FFT periodically to catch emerging cycles and retire fading ones.
If your FFT and Hurst Cycles Spectrometer outputs are synchronized—meaning they both highlight the same dominant cycle lengths at the same time—that’s a pretty strong signal in cycle analysis.
Here’s why:
1. Higher confidence in the cycle
- FFT is purely mathematical: it doesn’t “care” about market theory—it just decomposes data into sinusoidal components.
- Hurst’s spectrometer is market-aware and noise-tolerant, looking for persistent cycles.
- When both agree, it suggests the cycle is not just a random spike in the spectrum but a structurally persistent rhythm in the market.
2. More reliable timing
- FFT alone can’t tell you where in the cycle you are—it only identifies frequencies.
- Hurst’s method tracks phase (peak/trough positions), giving actionable timing.
- Synchronization means your frequency detection and your phase model are aligned, so your turning-point forecasts are more trustworthy.
3. Reduced false positives
- FFT can be fooled by transient noise patterns.
- Hurst can be biased by pre-set “nominal cycle” expectations.
- When they independently lock onto the same cycle, the chance that it’s noise drops significantly.
4. Potential trading edge
- You can trade with the cycle’s rhythm, entering near troughs and exiting near peaks with greater conviction.
- You might also size positions more aggressively when both methods agree, since the statistical edge is higher.
In practice, people often set up something like:
- FFT Spectrum → watch for strong peaks that persist for several bars of data.
- Hurst Analysis → see if it confirms the same cycle length and shows favorable phase for entry.
- Trade Filter → only act when both are in sync, plus price action agrees.
If you want, I can outline exactly how to run and sync these two analyses in a single charting workflow so they reinforce each other in real time. That’s where the real power comes in.
Both indicators are available for QChartist (separate canvas)