Neo wave and Ichimoku Cloud is one of the most objective way of trading. Nifty has been moving very precisely as per Time Cycles and also as per Elliott wave patterns.
Ichimoku cloud helps traders to stay in the direction of the trend and provides important support or resistance zone along with Price action.
Nifty hourly chart:
Nifty Neo wave counts from the lows clearly suggest prices are moving in form of triple corrective pattern on upside.
By simply trying to combine the movement as per Ichimoku cloud one can make out that whenever there was a dip towards the lower end of the cloud it concluded wave X .
The recent dip we saw towards 16440 was minor wave b as prices found support towards the upper end of the Cloud and bounced back sharply from there.
US Fed announced rate hike of 75 bps as inflation crosses 9.1% in US. This is a huge rise but despite of that global markets have continued to move up. So majority of the traders who were sitting on side-line due to FED meet have simply failed to capitalize on the ongoing up move. Therefore market movement is independent of events and news can only result into short term volatility but the trend remains unchanged.
Gaps: act as important support or resistance to prices. We can see that immediate support is at 16740 followed by 16600 which is Cloud as well as major Gap support.
Neo wave suggests that wave b took lesser time compared to wave a and so the ongoing pattern after wave X is either a Diametric or Extracting Triangle. It is best to use dips to buy as long as 16440 is protected since if Diametric pattern is ongoing we might have more legs before a major reversal will happen.
In a nutshell, by combining Ichimoku Cloud with Neo wave and Price action one can form excellent trade setups. Upside levels to watch basis of Gann square of 9 is 17227 levels.
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