In my previous Article I mentioned about 2 major Gann dates with which Financial markets around our planets has to deal with. On Friday we saw market making an attempt of stabilising after Thursdays decline. The idea was to have a bearish view below a break of 11725 on spot. The level which was broken on thursday. And on the same day it made the low of 11661 on spot.
Going ahead this low would have a greater significance specially for this week because this low was protected on Friday. A daily close below this point would open up another 144 points on downside for NIFTY. according to time cycle analysis. As per Price cycle as I mentioned earlier as well it is signaling downside the support of this Price cycle is at 11570 on spot. But for trading purposes who deals only in plane futures or options they should wait for some bounce from current levels until the zone of 11860 to 11880 to short with the SL of 11916 and the target of 11570 and 11410 on spot. The beauty of considering both the cycles of Price and Time is the best combination to understanding the basic pattern and at the same time also provide a greater clarity when 1 cycle wont complete its rotation and when the cycle will complete its rotation. Because Price and Time has to be on same track to complete the rotation of a combined cycle if they are not aligned on same direction it would always give mixed signals to all Traders
Many of my reeders usually thinks I trade with such wide stoploss which is not true really. The levels which I share are not the trading levels they are cycle levels which are used to understand the direction of an index or stock. Several times I had said this fact in past. Infact no one should take a trade whose risk reward doesn’t gives the ratio of 1 on 1 but if you can trade with option spread then these cycle levels would be of great help. Because option spreads could give you the flexibility to handle market Voletility and at the same time it helps you to execute plan B in trading
Trading options spread could be very risky if you are not aware of all cycles of short medium and long term
Disclaimer views expressed above are personal. And are Subject to change with time. Any Trades taken with reference to above Analysis has to be at your own risk. Trading in Financial markets is always subject to risk. So dont forget to consult your Financial advisor before taking any trades.
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