The Gann-Based Geometrical Setup
Building on yesterday’s brief overview, this analysis provides a detailed breakdown of the geometrical setup for the NIFTY. The methodology is applied to the recent swing from the June 30th high of 25,669 to the August 8th low of 24,339. The time duration of this swing is 39 calendar days, while the price range covers 1,330 points.
Calculating the 45-Degree Angle
The core of this calculation involves deriving a 45-degree angle for both price and time. To determine the price component, the total range of 1,330 points is divided by 8, yielding a value of 166.25. This means that multiples of 166.25 from the high or low represent the 45-degree price angle. For the time component, the 39-day duration is divided by 8, resulting in a value of approximately 5 days. In simple terms, this signifies that the 1×1 angle rises by roughly 166 points for every 5 calendar days, starting from the August 8th low.
Practical Application & Forecast
The application of this angle to recent market action provides a clear trajectory. The angle was at 24,505 on August 13th, reaching 24,671 by August 18th. It is projected to hit 24,837 on August 22nd, 25,004 on August 28th, and 25,170 on September 2nd, with a forecast for the NIFTY to cross its June 30th high around September 16th. This illustrates a powerful method for projecting future price movements based on past cycles.
Complexity and Conclusion
It is important to acknowledge that this is a basic approach to Gann theory. The analysis can become extremely complex when factoring in multiple active cycles and the interrelationship of various market swings. As a result, traders should note that the index must maintain its position above these key spot values on the given dates to sustain a bullish structure. For now, this serves as a foundation for understanding Gann angles, with more advanced applications to be explored in the futur.”
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