Chapter 3 in Hurst's book explains in great detail how the stan­dard charting techniques—trendlines and channels, chart pat­terns, and moving averages—can be better understood and used to greater advantage when coordinated with cyclit, principles. Figure 14.11 helps explain the existence of trendline and chan­nels. The flat cycle wave along the bottom becomes a rising price channel when it is summed with a rising line representing the long term uptrend. Notice how much the horizontal cycle along the bottom of the chart resembles an oscillator.
Figure 14.12 from the same chapter shows how a head and shoulders topping pattern is formed by combining two cycle lengths with a rising line representing the sum of all longer dura­tion components. Hurst goes on to explain double tops, triangles, flags, and pennants through the application of cycles. The "V" top or bottom, for example, occurs when an intermediate cycle turns at the exact same time as its next longer and next shorter duration cycles.
Hurst also addresses how moving averages can be made more useful if their lengths are synchronized with dominant cycle lengths. Students of tradition‑
Figure 14.13 (Source: The Power of Oscillator/Cycle Combinations by Walt Bressert.)al charting techniques should gain additional insight into how these popular chart pic­tures form and maybe even why they work by reading Hurst's chapter, entitled "Verify Your Chart Patterns