See the monthly chart of Nifty Spot in ichimoku, Fib & Gann.
Nifty went into corrective mode from 2008 peak of Bull market and retraced just above 0.786 of Fibonacci Retracement. In the process of correction, it touched the cloud and advanced again further.
Look at Gann Chart of 21 years. Nifty's correction just ended below 2 X 1 angle around 2250 in the year 2008.
Where Nifty right now placed ?
As per Gann methodology, if it closes above 5712 and when technical validation is completed, its headed to first target of 9320.
One finer point you will note, Nifty invariably bottoms out in monthly chart when stochastic oscillator (parameter 8 , 4, 3 ) gets into oversold and turns on upside. This you can notice in the Gann Chart.
Importantly, I observe many talk about Nifty's direction and targets without understanding its rhythemic move. Nifty as a broad market Index, doesn't break 3 months low so easily in an uptrend and if it does it, then market goes in for a big correction. In the same vein, when it crosses 3 months high after a substantial correction, then upmove is put in place. But aberration to 3 months breakout of high and low are minimal, which you can observe from charts.
Now lets combine all the tools and see if we could arrive at logical conclusion.
Nifty is trading above ichimoku cloud and has made breakout of 3 months high with Stochastics of 8,4,3 is turningup from oversold region. All these are perfectly set for upmove.. but catch here is, from Gann methodology. Unless Nifty closes above 5712, there cannot be any substantial upmove. As market has already overrun on upside without a breather, probably could face stiff resistance between 5475 - 5575 which is again Gann level of resistance.
Once when Nifty closes above 5712 with technical validation in place, then Good days are ahead with a substantial move to 9320.
I have tried to explain you the advantage of using multiple tools to arrive for trading decisions than simply relying on a standalone methodology.
CREDIT: RameshRaja
Nifty went into corrective mode from 2008 peak of Bull market and retraced just above 0.786 of Fibonacci Retracement. In the process of correction, it touched the cloud and advanced again further.
Where Nifty right now placed ?
As per Gann methodology, if it closes above 5712 and when technical validation is completed, its headed to first target of 9320.
One finer point you will note, Nifty invariably bottoms out in monthly chart when stochastic oscillator (parameter 8 , 4, 3 ) gets into oversold and turns on upside. This you can notice in the Gann Chart.
Importantly, I observe many talk about Nifty's direction and targets without understanding its rhythemic move. Nifty as a broad market Index, doesn't break 3 months low so easily in an uptrend and if it does it, then market goes in for a big correction. In the same vein, when it crosses 3 months high after a substantial correction, then upmove is put in place. But aberration to 3 months breakout of high and low are minimal, which you can observe from charts.
Now lets combine all the tools and see if we could arrive at logical conclusion.
Once when Nifty closes above 5712 with technical validation in place, then Good days are ahead with a substantial move to 9320.
I have tried to explain you the advantage of using multiple tools to arrive for trading decisions than simply relying on a standalone methodology.
CREDIT: RameshRaja
