Time cycles are very important technical analysis study which is used to identify probable reversal in prices. We apply Hurst’s Time cycles on index and stocks to see if there is periodicity and combine this method with other techniques like channels and Moving averages.
As shown in below chart we have applied Time cycle on Ashok Leyland daily chart along with Elliott Wave. This cycle clearly shows that lows are formed every 55 days which is the cycle period.
Ashok Leyland daily chart:
The following is the extract of write-up which is taken from “The Financial Waves Short Term Update”.
Ashok Leyland is one of the outperformer within the auto space as it has managed to give 75% returns is last one year. Moreover when Nifty 50 witnessed a selling in month of February this particular stock was touching new highs consecutively.
As shown on daily chart, we have included 55 days’ Time Cycles which has helped us in spotting major lows in the past occasions. We had recently witnessed a bounce in the current month and one of the reasons for it was that the time cycle low was already due. This suggests that ……..
In short, for Ashok Leyland any dips towards ….… can be used as buying opportunity for a trend towards…….
To know more how various advanced coccepts like Time cycles are combined with Elliott wave counts on Nifty, Bank Nifty and stocks subscribe to our Equity report “The Financial Waves Short Term Update”. Also get a 2 days free trial for stock tips for intraday basis in Stock, Commodity & Forex. Start Trial Now.