Avax Macro Time and Price CyclesThis a daily line chart using the logarithmic scale to plot averages in increments of 15 degrees of time vs price. A logarithmic chart is used to display the equalities in percentage change rather than dollar value of change. We use the logarithmic chart for these measurements as it is the real time percent change that drives the phsycology of buying and selling. Consider a price increase of $1.00, if starting at $1.00 and rising to $2.00 this would be a gain of 100%. If starting at $100, a $1.00 price increase is mathematically very different than it is when starting at $1. It is the percentage change in value that drives buying and selling decisions, therefore we use the logarithmic price chart to measure buying and selling cycles from past price action.
Why the circle? We use the shape of a circle as a circle is simply nothing more than a line each where point of it's plot is an equal distance from a fixed point (the circles center).
3 points are necessary to construct a circle and once a circle has been constructed we can use the center of circle to map out equal portions of time vs price.
We simply find 3 points that match the curvature of a circle indicating there is a specific point that can be measured from and choose to use 15 degree increments as it is equal portions of a circle and typically provide the best results.
The point where each angle crosses the curvature of the circle represents a point where there is equality with a past price level and past point in the supply vs demand cycle.
The circle is not used as a trend line that price has to bounce off of but rather a fixed point to measure the average change of time vs price.
While this intersection of the 15 degree angle with the circle may mark a significant date and price level they do not need to occur at the same time.
The significant date and price level can and often do occur completely independant of each other and when price is approaching a price level or cycle date price action and indicators can be used to interpret what kind of reaction to expect.
