Draft — content under review

Time translation

Shift in time of price peaks and troughs vs the theoretical cycle; with positive underlying trend, peaks tend late and troughs early.

On this page

Post-1970 — Hickson concept; the 1970 book describes skew and M-shapes without this label.


Definition

Time translation is the temporal offset between turning points in observed price and those of the pure cycle component.


Practical rule (Hickson)

Underlying trend Typical price effect
Positive Peak late; trough early
Negative Peak early; trough late

Explains why troughs are more reliable than peaks for timing.