In cycle analysis, which of the following is a fundamental step?

In cycle analysis, defining delta is a fundamental step because it involves establishing the difference between cycles or phases, helping analysts to quantify and compare the lengths, amplitudes, and other attributes of the cycles being studied. By defining delta, practitioners can identify relationships between cycles, leading to a deeper understanding of market behavior and potential future movements.

A strong understanding of delta provides the basis for further analysis. For instance, once the delta is defined, cyclers can analyze how cyclical patterns might affect price movements and identify repeating patterns over time. This is crucial in predicting potential turning points in the market and making informed trading decisions.

While visual analysis, completed phasing, and establishing trend lines are important in the broader context of technical analysis, they are not as fundamental to the specific process of cycle analysis as defining delta is. Each of these processes has its role, but without a clear understanding of delta, the interpretation of cycles can lack precision and specificity.