Stock Market Price Trend Prediction Using Time Series Forecasting
Oct 03, 2023Time is the essence for trading successfully. By using Time cycles trader can even derive targets for price using the concept of Future Line of Demarcation (FLD).
This method is developed by J. M. Hurst.
Nifty daily chart showing intersection of Prices with black indicator to derive targets
Nifty daily chart: (55 Days Time cycle with FLD)55 Days Time cycle – Nifty has been forming lows every 55 days as per this cycle and we can clearly see that in above chart. The dotted red line is the main 55 Days Time cycle and we can see sharp bounce back on upside after prices are near that zone. Prices are now again approaching near to 55 Days Time cycle but positive price action is awaited. A close above prior day’s high can be simple and powerful way to combine price action with Time cycle.
Future Line of Demarcation (FLD) - is an important Technical analysis tool that helps us to project price targets, support and resistance points and to understand the underlying trend.
Whenever prices have crossed above or below the black line we get the target on upside or downside with prices moving equal amount lower from the intersection point. This has worked out precisely since many years. Also this black line has acted as resistance or support unless decisive breakout is observed.
Nifty formed a low near 19223 on 31st August 2023 and bounced back sharply from there. Later there was an intersection of prices with FLD line near 19680 levels. Projecting the difference of 19680 - 19223 = 457 points on upside gives a target of 20137 and the same target level is precisely achieved by prices on 15th September 2023. This simply shows power of Time cycle which has been used to derive medium term targets for Nifty.
We can see that the 2nd last instance where the downside target was missed but most of the occasions this concept of Price forecasting using Time cycle has worked amazingly well.
In a nutshell, by applying the concept of Time correctly along with Price action it is possible to trade profitably. Time cycle in itself is complete trading system that can give price targets, reversal areas, support, resistance and stoploss levels.
This is the concept of Time but one can derive clear price targets even on smaller 15 minutes and 5 minutes time frame. This is the power of Time Cycles.
Combine the above method with Gann square of 9 to find out the important levels where Nifty might find support & resistance in near term. It is amazing to see how these advanced methods get aligned together.
Master of Cycles (MOC) – is scheduled on 28th – 29th October 2023, where we will discuss clear trade setups using Hurst’s Time cycles, Gann square of 9 and derive trades on Options forming strategies. Limited seats only, Early Bird Ends on 10th October. For more details visit here
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