Simple Time Cycle Trading Strategy To Enter Stocks
Sep 15, 2021
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One of the most important aspects of a trader is to time the market. To do this there is no better tool than time cycles which be used with other techniques that can add to improve the accuracy of trade setups.
We have shown below an example of how the Time cycle can be used in Hindalco to identify a buying opportunity in the next few days.
How can this help us in our trading entry decision making?
Hindalco Daily chart:
On the daily chart of Hindalco, the vertical lines represent the 20 day time cycle which we have identified on this time frame. Notice how after every 20 days near the vertical line an important low is formed with a slight variation of one of two bars.
As prices start to move lower close to the time cycle day we can use the bar technique to enter the stock long. I.e The first candle after the time cycle low formation which closes above the high of the prior day can be used as buy signal.
A stop loss can be placed below the swing low formation and one can ride the trend on the upside as long as the price does not close below the prior day low.
This is a simple way by which one can combine Time Cycles along with Candlestick for a powerful trade setup.
Master of Cycles Simple strategies like these are very effective in systematic trading. One can learn the right way to plot time cycles in our upcoming Master of Cycles program on 9-10th October 2021, Limited seats only, Early Bird Ends on 25th September. Click here to know more details.
Mentorship on Timing the Markets for the FIRST TIME EVER starts November 2021 – In this Mentorship program, all the necessary tools are given right from stock selection methods, strategy, follow-up action to derive a complete trade setup in step by step fashion. To know more check here