Bank Nifty 18 Days Time Cycles and 34450 Support!Jun 09, 2022
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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.
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 34800 levels. Bank Nifty is yet to form a bullish candle near the 18 Days cycle. So we have time in sync but prices are more or less moving in sideways. Now a decisive close above 35200 will indicate a positive reversal to upside with support near 34450 giving some leeway and seeing previous price action support area. 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. Also on 13th May 2022 this cycle worked like magic forming a low which remained protected until now.
This time Bank Nifty is at crucial juncture. A move back above 35200 will be short term bullish as cycle low will be confirmed whereas a close below 34450 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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