Bank Nifty 18 Days Time Cycles and 35380 Support!

bank nifty time cycles trading Mar 24, 2022
Bank Nifty , Trading, Time cycles

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Nifty and Bank Nifty had been moving in a broad range but with sharp fluctuations at the same time.

Trading using Time cycles can provide a broader outlook with possible reversal zones.

Below chart of Bank Nifty shows 18 Days Time cycle that has been able to capture important lows.

Bank Nifty Daily chart:

We can see that on most of the occasions Bank Nifty managed to form a low every 18th Days and reverses back on upside from there. However, this has to be clubbed along with Price action or Candlestick techniques. A green candle is must with Time confirmation. This way we create a system of Price and Time confluence. Many time traders focusses only on time and ignore the price movement. This can be on a few occasions result into undesirous outcome. Also most of the traders focusses on Price and not at all on time which can be disastrous. So, balance has to be maintained between Price and Time confluence.

As shown on above chart we are now standing at the 18 day cycle low near 35380 levels. Bank Nifty formed a bullish candle near the 18th day but since then has only moved sideways. Now a decisive daily close below 35380 will suggest negative outcome as per Time cycles. This cycle in late February 2022 generated a sell signal as prices did not break above resistance and broke the lows resulting into sharp selloff whereas on prior 3 occasions it resulted into a very strong upside rise.

This time Bank Nifty is at crucial juncture. A move back above 36000 will be short term bullish as cycle low will be confirmed whereas a close below 35380 will be a sign of concern.

In a nutshell, incorporating Time factor in trading can enhance perception to see the markets and can be much needed tool to trade successfully.

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