You can handle the problem this way. Assume $a_0=a$ and $a_1=b$.
The behaviour of the sequence always depends on the belonging of $(a,b)$ to one of the nine cones depicted below. By assuming, for example, that we starts with $(a,b)$ in the first cone ($a\geq 0,a\leq b\leq 2a$), the sequence is:
$$ a,b,b-a,-a,2a-b,3a-b,a,b-2a,a-b,a,b,b-a,\ldots\tag{2}$$
and the period is $9$. By hand, we just have to check that this happens for any possible starting cone. Or be more clever. This is how the regions of the $(a,b)$-plane are mapped one into another:

Starting in any point, we come back to that point in $9$ steps. To put in elegant terms, the map
$$\phi:(a,b)\to(b,|b|-a)$$
sends the $n$-th cone depicted in the $n+1$-th (the $9$th in the first one) with a bijection. Since the orbit of a point in the first cone is closed, the orbit of any point is closed, and its cardinality is nine.