Let us see again the phase of the cycle that we are currently moving in as it will help us to understand the overall maturity of the recent up move.

Nifty daily chart:


Wave analysis:

The below research is picked up from the daily morning research report “The Financial Waves short term update”

Understanding Hurst’s Time cycle: As per Hurst’s Time cycle method there are predefined standard nominal cycles and we have to identify actual cycles that are in close proximity to it. On Nifty one such cycle that has worked very well is 54 days cycle which has helped us to capture important lows. Now as per this cycle the previous low was supposed to be formed on 1st September but due to minor delay actual low was formed on 8th September after 5 trading sessions. When analyzing time one should always give a leeway of 10% to the cycle. We therefore combine this technique along with Elliott wave and Channels to increase the accuracy for pin pointing the turns and at certain occasions exactly to the day.

Understanding Topping process: Time cycles are usually used to capture lows as it is synchronized but tops are dispersed. So accuracy takes a hit while trying to identify distribution but it still help us to understand the maturity of up move. Ideally a cycle reverses from middle of its period i.e. a 54 days cycle should top out at 27 days provided there are no other cycles acting (actually it is not the case and so prices do not top out exactly at the middle as many cycles are working on prices at every point of time). As per this method, considering the blue cycle shown on daily chart we are already in …….. days of up move and as per red (displaced cycle) we are now in ……….. days of up move. This means that either the cycle has already turned ……..or it should do so in next ……. trading days.

Also the next important low as per the 54 days cycle is going to be only in late ………

Predicting Elliott wave pattern using Cycles: Cycle analysis provide further clarity on the Elliott wave pattern and it confirms our stand that the ongoing up move is only wave ……. and Internal structure of this wave is shown on hourly chart (shown in actual research report)…

(A few of the text with crucial levels are purposely removed which are shown in the actual research report published in morning – The Financial waves short term update)

Nifty has been moving very much in sync with Time cycles and Elliott wave. It is time to stay alert again and not get carried away. Prices are approaching the inflexion area and slowly the indicators are getting aligned… To ride the next BIG trend subscribe “The Financial Waves short term update”. Visit Pricing Page or Contact US for more details.