Buy sell decision? If the current price is above 1X4 trend line i.e. 8767.94 in the above table then trade will sell for target of 1X1 trend line i.e. 8797.75 and final target 1X16 trend line i.e. 8820.70. If the current price is below 4X1 trend line i.e. 8782.32 in the above table then trade will buy for target of 1X1 trend line i.e. 8754.58 and final target 1X16 trend line i.e. 8737.83 What the trader will do if all targets are achieved? In This case the trader have to derive the price reference for 2nd cycle by changing the opening price with the final target price of the 1X16 or 16X1 trend line . Below table explains the 2nd cycle price points for uptrend and downtrend.

 

Second cycle uptrend

				Price
Price Range			86.25	8820.70	86.25
	Degree	Degree Factor	Resis tance			Degree Factor
16X1	86.25	0.48	95.38	8866.40	1X16	86.25	0.48	77.58	8783.53
8X1	82.5	0.46	94.97	8864.23	1X8	82.5	0.46	77.95	8784.97
4X1	75	0.42	94.16	8859.93	1X4	75	0.42	78.68	8787.91
3X1	71.25	0.40	93.76	8857.81	1X3	71.25	0.40	79.05	8789.41
2X1	63.75	0.35	92.95	8853.62	1X2	63.75	0.35	79.80	8792.44
1X1	45	0.25	90.96	8843.44	1X1	45	0.25	81.67	8800.28
1X2	26.25	0.15	88.98	8833.68	2X1	26.25	0.15	83.56	8808.51
1X3	18.75	0.10	88.20	8829.89	3X1	18.75	0.10	84.33	8811.92
1X4	15	0.08	87.80	8828.02	4X1	15	0.08	84.71	8813.64
1X8	7.5	0.04	87.03	8824.33	8X1	7.5	0.04	85.48	8817.14
1X16	3.75	0.02	86.64	8822.50	16X1	3.75	0.02	85.86	8818.91

Second cycle downtrend

				Price
Price Range			86.25	8737.83	86.25
	Degree	Degree Factor	Resistance			Degree Factor
16X1	86.25	0.48	95.38	8783.53	1X16	86.25	0.48	77.58	8700.66
8X1	82.5	0.46	94.97	8781.36	1X8	82.5	0.46	77.95	8702.10
4X1	75	0.42	94.16	8777.06	1X4	75	0.42	78.68	8705.04
3X1	71.25	0.40	93.76	8774.94	1X3	71.25	0.40	79.05	8706.54
2X1	63.75	0.35	92.95	8770.75	1X2	63.75	0.35	79.80	8709.57
1X1	45	0.25	90.96	8760.57	1X1	45	0.25	81.67	8717.41
1X2	26.25	0.15	88.98	8750.81	2X1	26.25	0.15	83.56	8725.64
1X3	18.75	0.10	88.20	8747.02	3X1	18.75	0.10	84.33	8729.05
1X4	15	0.08	87.80	8745.15	4X1	15	0.08	84.71	8730.77
1X8	7.5	0.04	87.03	8741.46	8X1	7.5	0.04	85.48	8734.27
1X16	3.75	0.02	86.64	8739.63	16X1	3.75	0.02	85.86	8736.04

The above example is being taken from the 18th March 2015 nifty future data. This is also the proof of the success of this trade.