Will Nifty 55 days’ Time cycle work again? A trending move should emerge soon!

Nifty has failed to show any positive momentum in this week even after Moody’s upgrade and prices have continued to move in a range. This is in lines with our expectations and the euphoria has simply failed to sustain so far.

We have been using Time cycles to understand important lows and on occasions to see if there is a possibility of top as well.

Look at the below chart of Nifty shown in today’s morning research report – “The Financial Waves short term update”

Nifty daily chart:

Understanding 55 days’ Time cycle: A cycle is an event, such as a price high or low, which repeats itself on a regular basis. Economic movement is highly cyclical and so is stock market movement. Lows are normally used to define cycle length and then project future cycle lows. Cycles follow certain rules which are explained below:

Understanding Harmonicity: Cycles are harmonious in nature and are normally governed by the factor of 2 or at times by factor of 3. This means that as 54 months cycle exists there is 54/3 = 18 months cycle, 18/2 = 9 months cycle. So 54,18 and 9 months become important set of predefined cycles. Similarly there are smaller cycles like 56 days, 28 days, 14 days.

Understanding Synchornicity: This concept of cycle science indicates that cycle lows are synchronous in nature. It means that if the larger cycle is forming a low then the smaller cycle by default forms a low at that point. So a 54 months cycle low will result into lows of 18 months, 9 months and so on.

We have identified 55 days’ Time cycle that has worked well on most of the occasions for catching important lows on Nifty. This cycle if considered from the lows of Demonetization which is 9th November 2016 has helped to capture short term reversal areas. This can be seen on the chart above.

Topping process or distribution is usually seen during second half of cycle. Let us see if this cycle can put pressure after next few days or not.

If you combine Time cycle with Price pattern the accuracy can be increased drastically. Simply imagine the power of forecasting when you see these advanced concepts combined together.

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