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Hurst’s time cycles suggest its time to buy gold again, here's why

Once the trend is clear on a bigger time frame, a trader can then drill down to smaller time-frame charts to time the exact entry using simple methods of Time and Candle Sticks.

May 31, 2021 / 01:43 PM IST

Time cycles are a very important technical analysis study and are rarely paid enough attention by traders.

Just take a look at the charts below for gold prices. It is simply amazing how easy trading becomes if one is aware of such reversal time areas with the exact date to the minute.

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JM Hurst, often considered the 'father' of time cycles, suggested there are some standards or nominal cycles applicable in the scientific field. The same can be extended to freely traded markets.

We used the concepts of Hurst’s time cycles and found actual cycles working on gold prices. It is amazing to see it can be applied simply across daily, hourly and 15-minute time frames and all worked extremely well.

We can see that all the major lows formed on gold were near the 55-day cycle, including the one in April 2021 near 1,700 and a rally of more than 12 percent from there is seen.

Once the trend is clear on bigger time frame, a trader can then drill down to smaller time frame charts to time the exact entry using simple methods of Time and Candle Sticks. Many traders complicate it by combining various indicators but it is not required as we can easily trade keeping things simple.

Looking at the 15-minute time cycle, one can decide at which hour to buy gold.

Looking at the daily time cycle, a swing trader or an investor can see that the next important low for gold, in both dollar and rupee terms, is going to form by the third week of June, which will be an opportunity to enter and ride the ongoing trend on upside.

The next resistance level on the upside is near Rs 52,000 and dips from here until the third week of June 2021 will provide an opportunity to enter into this precious metal.

(The author is Founder/CEO, Waves Strategy Advisors.)

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​



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Ashish Kyal is Founder of wavesstrategy.com and Trading Gurukul. Follow on Twitter @kyalashish and YouTube channel @kyalashish
first published: May 31, 2021 01:43 pm
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