FLD- Future Line of Demarcation applied on Nifty

Nifty witnessed a sharp fall in the previous week followed by a V shaped recovery. It is amazing to see how the advanced tools like FLD gave an indication of this reversal very precisely.

FLD – Future Line of Demarcation is an important Technical analysis tool that helps us to project price targets, support and resistance points and to understand the underlying trend.

Following is the Nifty daily chart showing how the application of FLD helps in determining crucial reversal areas and target points.

Nifty Daily chart with FLDs-

Analysis:

In the above daily chart, when prices broke below the FLD line and overshot the target price recently in March, it was a clear indication that the bigger cycle has turned on the downside.
And post that when prices rebounded from 7511, at the level of around 9640, FLD indicated the target of nearly 2100 points on the upside and surprisingly Nifty stopped its rally exactly at that level before turning on the downside.

Once again prices crossed the FLD line on the downside giving a target of 470 points and this was again exactly the level where nifty halted the previous week.

The next crucial level to watch for is 11300. If prices go above the FLD line, we might see some minor push on upside before we turn down. However, One should trade very cautiously as the bigger cycles have turned down and prices might reverse on downside in no time. We have been discussing in weekly Friday webinar @ 4pm

Combine the above method with Gann square of 9 to find out the important levels where Nifty might find support in near term. It is amazing to see how these advanced methods get aligned together.

To get insight into important support levels and Elliott wave perspective on Nifty and stocks you can opt for the research report ”The Financial Waves short term update”. For copy of your research Register Here

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Next Mentorship starting from November 2020: I will be discussing all of the above methods on how to identify patterns and combine them with important indicators and Elliott wave, Neo wave theory, Hurst’s Time cycles. Only limited seats, Register now