To be more specific. If you gave me this chart, I would say that, on a volatility weighted basis, a lower dollar will balance the cycle.
But I am just reading the left hand axis label, and assuming some aggregate process that packs a good sphere. I could be talking about gut bacteria.
The idea of packing sphere is what makes chart analysis work. The chart analysis simply looks at the trade series and tries to find where the various trade queues are getting jammed, and about to break.
I made this point many years ago when I was doing Huffman coding on the SP500 stream. I was criticized by the charting folks and the engineering experts. I was right, a Huffman code simply, recursively hunts for jamming in the trade series, it uses sorting rather than geometry.
The real breakthrough was discovering an algebra of structured queues, the same idea that makes AlphaZero do its thing.
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