Harnessing Gann Cycles: July Monthly Trend Change Levels for FnO Stocks

Gann Cycles is a powerful technical analysis tool developed by renowned trader W.D. Gann. It is based on the concept that markets move in cyclical patterns and that these cycles can be used to forecast potential trend changes. Applying Gann Cycles to monthly charts of FnO (Futures and Options) stocks can provide valuable insights into potential trend reversals and help traders make informed trading decisions. In this article, we will explore the concept of Gann Cycles and how they can be used to identify monthly trend change levels for FnO stocks.

Understanding Gann Cycles

1. Price Cycles

Price cycles in Gann Cycles represent the distance between significant price highs or lows. These price swings are measured and projected forward to identify potential future price levels where trend reversals or significant price moves may occur. Traders can identify the length of the price cycle by measuring the distance between significant price points and applying that length to future price projections.

2. Time Cycles

Time cycles in Gann Cycles represent the duration between significant price highs or lows. These time durations are measured and projected forward to identify potential future time periods where trend reversals or significant market moves may occur. Traders can identify the length of the time cycle by measuring the duration between significant price points and applying that length to future time projections.

Applying Gann Cycles to Monthly Charts of FnO Stocks

To apply Gann Cycles to monthly charts of FnO stocks and identify monthly trend change levels, follow these steps:

1. Identify significant price highs and lows on the monthly chart of the FnO stock you are analyzing. These points should represent major turning points or significant price swings.
2. Measure the length of the price cycle by calculating the distance between these significant price points.
3. Project the price cycle forward from the most recent significant price point to identify potential future price levels where trend reversals or significant price moves may occur.
4. Identify significant time durations between the same significant price points. Measure the duration in terms of the number of months between these points.
5. Project the time cycle forward from the most recent significant price point to identify potential future time periods where trend reversals or significant market moves may occur.
6. Use the projected price levels and time periods as monthly trend change levels for the FnO stock. These levels can act as potential areas of support or resistance, where traders can monitor price action and make trading decisions accordingly.

It is important to note that Gann Cycles are a subjective analysis tool, and their effectiveness may vary depending on the individual stock and market conditions. Traders should combine Gann Cycles with other technical analysis tools, such as trendlines, support and resistance levels, and indicators, to validate potential trading opportunities.

How to Trade

1. Levels are Valid from 10-March 2022 till 09-April 2022
2. Wait for Price to come near the levels
3. Once the price is near to level watch for 5 mins candel close.
4. If Close above it Take trade with 1% as SL in Stocks 50 Points in Nifty and 108 Points in Bank Nifty.
5. Target for Stocks 5% than TSL Nifty 125 points and TSL Bank NIfty 333 points and TSL
6. ANy given Day SL gets triggred 2 time no further trade
7. We have explained below Video with 1 Eg on Nifty Bank nifty and Auropharma
8. Stay Disciplined and Trade with Right Position Size.

 

For Back Testing Sharing Levels for June Month 

 

Gann Cycles provide traders with a unique perspective on market trends and potential trend reversals. By applying Gann Cycles to monthly charts of FnO stocks, traders can identify monthly trend change levels and gain insights into potential areas of support or resistance. However, it is essential to combine Gann Cycles with other technical analysis tools and indicators to confirm potential trading opportunities. Traders should practice proper risk management and continuously evaluate the effectiveness of Gann Cycles in their trading strategies.