Each stock and indices has its own cycle of topping and bottoming. Time Cycles are used to predict the turning points when used with other aspects of Technical analysis.
Cycle lows are normally used to gauge the time period of cycle and accordingly helps in estimating when the next low will be formed.
We have been using Time Cycle along with Elliott wave technique to tap the turning points of Nifty and other stocks.
Below is the chart of Nifty picked up from the Monthly research report – The Financial Waves Monthly update
Nifty daily chart- Time Cycles
Following was mentioned in the May issue of monthly research report –
Prices behave in a cyclical fashion and cannot be independent to it. Everything in nature and financial markets is governed by cycles right from the Solar Cycle which is 11 years, Lunar cycle of 28 days, Seasonal cycle, Economic Kondratieff cycle of 54 years, Decennial cycle 10 years, Presidential cycle of 4 years and many more.
Nifty …… Days Cycle – This is the most meaningful cycle for any trader and we have been using this cycle over the years in order to identify important reversals and also change our stand from sell to buy. This was the cycle why we turned extremely bullish right on 27th May 2020 when this also coincided with the smaller 80 hourly cycles. The outcome has been brilliant and the markets obliged us by rallying higher with more than 1300 points post the cycle lows kicked in. This cycle is now in buy mode and typically tops out post 25-30 days of completion. We have completed only 11 days within this so far and therefore we can expect sideways action if not an uptrend. Combining Neo wave suggests that we should have sideways range within …………. levels.
The above research shows how to Time the market using Advanced Elliott wave – Neo wave methods and Time cycles.
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