Nifty – Time Cycles used for Price Targets!Jun 05, 2023
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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).
This method is developed by J. M. Hurst.
Nifty daily chart showing intersection of Prices with black indicator to derive targets
Nifty daily chart: (55 Days Time cycle with FLD)
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 red line 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 above or below the black line we get the target on upside or downside with prices moving equal amount lower from the intersection point. This has worked out precisely since many years. Also this black line has acted as resistance or support unless decisive breakout is observed.
Nifty formed a low near 16830 on 20th March 2023 and bounced back sharply from there. Later there was an intersection of prices with FLD line near 17670 levels. Projecting the difference of 17670 - 16830 = 840 points on upside gives a target of 18510 and the same target level is precisely achieved by prices on 29th May 2023. This simply shows power of Time cycle which has been used to derive medium term targets for Nifty.
In a nutshell, by applying the concept of Time correctly along with Price action it is possible to trade profitably. Time cycle in itself is complete trading system that can give price targets, reversal areas, support, resistance and stoploss levels.
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 & resistance in near term. It is amazing to see how these advanced methods get aligned together.
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