Nifty Targets using Time and FLD!Jun 29, 2022
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Time is the essence for trading successfully. By using Time cycles trader can even derive targets for price using the concept of Future Line of Demarcation (FLD)
Below chart of Nifty shows how intersection of prices by black signal line (FLD) has resulted into downside targets.
Nifty daily chart with 55 Days Time cycles:
55 Days Time cycle – Nifty has been forming lows every 55 days as per this cycle and we can clearly see that in above chart. The dotted black line in centre is the main 55 Days Time cycle and we can see sharp bounce back on upside after prices are near that zone.
Future Line of Demarcation (FLD) - is an important Technical analysis tool that helps us to project price targets, support and resistance points and to understand the underlying trend.
Whenever prices have crossed below the black line we get the target on downside with prices moving equal amount lower from the intersection point. This has worked out precisely since the top of 18600 levels. Also this black line has acted as resistance unless decisive breakout is observed above it.
Nifty is back towards the resistance of channel and also the FLD line which is near 15950 – 16100 levels. So crossing above this zone is not going to be easy. In case Nifty moves beyond 16200 we will get good momentum higher which will take prices to the distance equal to that before the intersection level.
In a nutshell, a reversal back on downside below 15680 – 15620 level will resume the downtrend whereas for a strong momentum to generate on upside decisive breakout above 16100 is must.
This is the concept of Time but one can derive clear price targets even on smaller 15 minutes and 5 minutes time frame. This is the power of Time Cycles
Combine the above method with Gann square of 9 to find out the important levels where Nifty might find support in near term. It is amazing to see how these advanced methods get aligned together.
Master of Cycles (MOC) – is scheduled on 2nd & 3rd July 2022, where we will discuss clear trade setups using Hurst’s Time cycles, Gann square of 9 and derive trades on Options forming strategies. 3 days to go, Limited seats, For more details visit here