Wednesday, November 6, 2013

Nifty: Understanding Time cycles using Detrended Price Oscillator (DPO)

Bottom Line: Nifty made another blue candle but of smaller magnitude compared to previous day.
Detrended Price Oscillator providing very important cycle!
The following was shown in the morning report of 5th November before the market opened in our daily research report “The Financial Waves Short term update” which has Nifty and 3 different stocks. 
Nifty daily chart:
Nifty 10 mins chart:
In previous update we mentioned that, “From Elliott wave perspective, this up move is seen as wave c with next resistance level coming near 6360… In short, using the bar technique only the trend is positive but Elliott wave structure and other indicators are suggesting this trend is in its matured stage.” 
Nifty continued its previous day up move but on smaller magnitude last Friday. Prices made a high near 6332 and closed back near the opening thereby forming a small Doji. On Muhurat Trading day Nifty index registered high of 6343.
We continue to stand with our view that the uptrend is in its matured stage as of now. The last 100 points of move on Nifty has created lot of euphoria in the market as many of the well tracked PSU banks showed huge gains in less than 2 days. Also, even though Sensex registered …….
Time Cycles:Understanding Detrended Price Oscillator (DPO) for Time Cycle - Detrended Price Oscillator (DPO) plots a centered Moving average and subtracts it from closing. The use of this indicator is to get more clarity on Time cycles that are currently ongoing in the markets. The parameter for DPO is of bigger Time cycle and it is in-turn showing a shorter time periodicity of ……… days. This cycle has been so precise everytime marked …... The next date for this cycle is near ………… 2013. This cycle is very peculiar in one way…
Elliott wave perspective: Looking at the shorter term chart, the current ongoing move is minute wave v(red) of minor wave v(blue) of c. This can be seen from 60 mins and 10 mins chart.
In short, looking at the overall structure, Elliott wave counts, Time cycles using DPO, momentum indicators, the current uptrend looks to be in matured stage. Nevertheless,….
Nifty has moved exactly as shown on 10 mins chart. This chart was shown in yesterday’s morning report and prices have already touched a low of 6240 from the high of 6343. To know the next possible move from short term perspective subscribe to “The Financial Waves Short term update”. For more information Contact Us or visit

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