Cycles Analysis Body of Knowledge

There were intensive cyclical upswings and downswings in the broad measures of economic activity output, employment, income, and sales in the business cycles. The business cycle is based on the alternating phases of expansions and contractions. The four phases of the process are expansion, peak, contraction, and trough. Characteristics such as GDP, interest rates, total work, and customer buying can aid in determining the present stage of the economic cycle. A business cycle analysis is finalized through a single boom and a single contraction in sequence, and you can see the various phases of the business cycle.

The growth and expansion phase ultimately slows down and reaches its peak. This phase is known as the peak phase, it determined by the cycle detection algorithm . In other words, the peak phase denotes the increasing growth rate of the business cycle attains its maximum limit. In phase, the financial factors, such as manufacture, income, sales, and employment, are higher but do not increase further. In the peak phase, the demand for various products will slowly decrease due to an increase in input prices.

The classical business cycles are recognized as recurrent, alternating phases of expansion and contraction in many economic activities such as output, consumption, prices, investment, employment, etc. The cycles are indicated by co-movements in the changes of the economic activities, with periodicities larger than one year. The concept of growth cycles can be defined as the deviations of the actual growth rate from the long-term growth rate. In addition, the growth rate cycles direct to the cyclical changes in the growth rate of economic activity. Cycle Indicator: The Cycle Swing Indicator CSI offers an optimized momentum oscillator based on the present dominant cycle by considering the dominant cycle swing instead of the raw source momentum. It is an accurate, zero-lag ultra-smooth momentum indicator with less noise and sharp turns. The CSI removes noise and shows real cycle swings. Cycle indicators conclude the timing of exacting market patterns. Dynamic analysis: A dynamic ...

If it is declined, the demand for products will develop rapidly and steadily, and the recession phase occurs. For analyzing the business, there were a lot of algorithms is using among the adaptive cyclic algorithm is also one of them. In the recession phase, it has all the economic factors, such as manufacturing, prices, saving and investment, begin decreasing. Mostly, producers are don’t know the demand for products is decreasing, and they continue to produce goods and services. In such a case, the supply of products goes above the demand.

During the trough phase, the financial activities of a country fall below the normal level. In this phase, the expansion rate of an economy evolves unfavourable. Sometimes the cycles decoding the hidden rhythm , and in addition, there is a rapid decline in national income and expenditure in the trough phase. There are various phases of the business cycle and based on this, you can analyze your business growth.