Friday, July 8, 2016

Bank Nifty: Application of Time Cycles to understand Elliott wave pattern

While trading or investing in Financial Markets, price as well as Time plays an important role. If timing is right then one can make most from the trend however wrong timing can lead to emotional and financial stress. Hence it becomes important to analyze the particular asset class with advanced studies likes Elliott wave theory, Neo wave and Time Cycles.

Below we have shown daily chart of Bank Nifty which was shown in The Financial Waves Short Term Update published in todays morning. Here we can see that the low formed in February 2016 was due to the Time Cycle of 117 days which is also close to the 108 days Hurst's Time Cycles. Now again this Time Cycle is due in the second week of August 2016, so what Elliott wave pattern and Time Cycles suggest for Bank Nifty ahead?

Bank Nifty daily chart: (Part of research shown from The Financial Waves Short Term Update)

Wave analysis:

From last few weeks we have been witnessing mixed performance among banking stocks. Private Banks has continued to move in consolidation whereas PSU banks have been outperforming the overall market and has showed sharp rise in last few weeks. Bank Nifty has showed V shaped recovery post forming low at 16950 level on 24th June 2016. The up move has managed to take out the previous pivot high of 18050 level, however post that it has failed to generate the strong momentum and consolidation is ongoing from last few days. This suggests us to look at the medium term structure.

The daily chart indicates that from the lows of 13400 formed in the end of February 2016 prices have continued to rise however the entire rally is corrective in nature. As per wave perspective, prices are in minor wave .. of third standard correction pattern. This suggests that either Flat correction or Triangle pattern is under formation. So as per this wave counts still sideways to negative action is left in this index.

Time Cycle of 117 days: In above chart we can see that Time Cycle of 117 days is working well to capture the bottoms. As per this time cycle now next bottom is due in the second week of August 2016 and as of now prices are trading at 3/4th phase of cycle and hence upside momentum from hereon should ...............

We have also shown 60 mins chart with internal wave count in original report which has been removed purposely from this free article section.

Also understand cycles can keep changing and one has to tweak it based on the latest price action. Time cycles helped us to capture a major low in early March 2016 when majority had given up on Equity markets and now everyone wants to buy stocks at much higher levels. Humans have tendency to herd and stock markets clearly reflects this herding behavior. Such behavior and emotions of Greed, Fear results into repetition of patterns again and again.

We, at Waves Strategy Advisors try to work with probabilities and use Time cycles to predict the probable Elliott wave pattern a stock or index might follow. Trading and investing is all about probabilities but sticking to time proven techniques have helped us to be on right side of the trend more number of times which is sufficient to be profitable on net basis. Many would look only at short duration to judge the validity of success or failure of any theory but our many years of experience has resulted into application and combination of Time cycles with Neo wave as one of the most powerful techniques that one can come across.

Attend Most Advanced Technical analysis training - Combining Time cycles with Neo wave - Advanced Elliott wave to forecasts the market from trading and investment perspective. Get free research report for a month to see its application as it develops in real time and post your questions on our Discussion Forum post training to keep learning the application of the same. Limited Seats left... To register fill the form on Contact US or Call us / Whatsapp at 9920422202 or 022 28831358 / write to us at

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