Education

# Elliot Waves - Looking very precarious

NSE:BANKNIFTY   NIFTY BANK
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If we see an impulse follow up bank nifty may correct viciously.

Well good wave counts with no rule broken as it is an ending diagonal.
vinodsinghfcca
@vinodsinghfcca, Sir I must confess I have started believing in the alternate bullish count which I have posted . Kindly have a look at it . It may be a leading diagonal. Regards
My Dear, Nice study. Thanks. Humble observation:
There are three basic rules for EWave
a) Wave 2 cannot retrace more than 100% of wave 1,
b) Wave 4 can never overlap wave 1,
c) Wave 3 can never be the shortest wave.
Kindly reorganize the wave count, please.
ParimalDevnath
@ParimalDevnath, You forgot one rule - wave 3 should always be an impulse and should always end beyond the end of wave one

There are two kinds of actionary waves . a. Impulse b. Diagonal . You have stated rules for an impulse wave . Actionary waves are those waves which further the trend of one higher degree . All reactionary waves develop in form of a corrective structure but not all actionary waves develop in impulsive structures. A diagonal is an actionary wave developing with corrective structures

In a contracting diagonal all the rules of an impulse apply except
1. Wave 4 always overlaps the wave territory of wave 1
2. In a contracting diagonal wave 1 > wave 3 > wave 5 and wave 2> 4. See wave 3 is still not the smallest. Wave 5 is the smallest.
3. In an ending diagonal structure will always be 3-3-3-3-3 . Wave 5 can be truncated.
4. In a leading diagonal wave structures can be 3-3-3-3-3 or 5-3-5-3-5 (with wave 4 overlapping wave 1). Wave 5 is never truncated.
Kindly see the structure in this light . It fulfills all the rules of a Leading or an Ending diagonal . Regards