On Monday in my Analysis on NIFTY I mentioned few points which were suppose to be important for this week. The first point to consider was the low of last Thursday of 11661 on NIFTY. And the other point was about the weekness of the short term Price Cycle.
The first point to watch was the low of 11661 which wasn’t broken. If it would had broken then NIFTY was open for 144 points on downside. So the TIME Theory dint gave the sell signal. Now coming to the second point which was about the Price Theory. Using which the idea was to take a short trade in the zone of 11860 to 11880 with the SL of 11916 for the Target of 11570 and 11410 on spot. It gave an entry on Monday and Stop loss on Tuesday. So after Time The Price also rejected the lower prices. In the same Article I tried to explain why it is Important that Time and Price stays on same track to complete the rotation of the cycle. And this was the perfect practical example why the cycle wasn’t completed. Because there is a reason after every action or reaction in market. There were early indications that this cycle wont get completed but still the chance was taken
Going ahead more positivity is expected in markets but it wont be a smooth rally. In the 2nd week of this month NIFTY gave the quarterly as well as the monthly breakout above 11800 mark. The Target of this breakout is placed at 12160 on spot in coming weeks. But in between we may continue to witness voletile moves on downside. As we are witnessing now so be prepared for such moves. The technical reason for this is mainly because markets are juggling with 3 high frequency time cycles
The first cycle which is causing irritation to NIFTY is the 12 year cycle from the lows of 22nd October 2020 second cycle which is again making markets Nervous is the 33 year cycle for October 1987. And the 3rd cycle is the grand cycle of 91 years from the great depression of 1929. Coincidently the Anniversary dates of all these cycles falls in 2nd half of October. So these high frequency cycles are causing trouble to weekly and monthly cycles. So coming days and weeks would be very intresting for all of us as a student of Gann and the cycle theory
In my last post I mentioned on options spread. After that I get some genuine question of how sir Gann really traded options using cycle levels. Attaching a pdf written by sir Gann below
https://drive.google.com/file/d/13pyFE4u_ndvjT5yDhoHu95wq_d9vg2Ir/view?usp=drivesdk
gann,insides 