NeeteshJain
Education

Educational 08: Head N Shoulder & Elliott Waves Relationship

NSE:BANKNIFTY   NIFTY BANK
This is an interesting educational post which I observed last week while analysing charts that were showing Head n Shoulder Patterns. I thought of relating it to the Elliott Waves Theory and found out some similarities in their pattern formation. I have displayed both the pattern formation and indicated WHEN & HOW TREND CHANGES once such patterns are formed.

H&S is a major reversal pattern and it is similarly indicated in Elliott Waves while showing a complete wave cycle where impulsive and correctives waves are added.

Key Similarities:

1. Left Shoulder of H&S pattern is compared to Wave 3 of EW

2. Head of H&S is compared with Wave 5 of EW

3. Left Shoulder is compared as Wave B of corrective Elliott Waves

4. Target of H&S is indicated as a completion of Zig-Zag Correction in Elliott Waves Theory

This make easier to indicate patterns and provide extra confirmation with other technical patterns. This makes our convinction strong and also make us confident to take informed decisions in the markets.

I would appreciate your views on the above sharing,

Thanks for support,

Regards,

Neetesh Jain

Related Ideas

A B C waves represents correction in already existing uptrend in Elliot wave cycle after which again repetition of wave 1 2 3 4 5 takes place while H&S represents reversal of major or intermediate trend. Sounds like having more of differences rather than similarities between them.
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What is the basic count of wave 3 in comparison to Wave B in a sub cycle Zig Zag impulse or corrective

How do u corelate?
Reply
@kawalgeek, After Wave 3, we have Wave 4 and Wave 5 that shapes the right shoulder and Head of Head n Shoulder pattern and ABC pattern formation provides the follow through of the ending waves and bring correction in the market with a shape of Head N Shoulder pattern. I hope that I provided the answer to your question. In case it is not clear, kindly prompt on me again. Regards.
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sir if you have more educational on elliot wave please post
+1 Reply
NeeteshJain rupambose32
@rupambose32 Sure, I shall be sharing more Elliott Waves lessons in upcoming educational posts. Regards
+1 Reply
samyr99 NeeteshJain
@NeeteshJain, thanks sir
Reply
That a very good analogy. So, we can now look for trading a/b/c, better c, since it may give
big reward. Thanks for sharing.
+1 Reply
NeeteshJain rajesh2467
@rajesh2467 Yes, you're on right track. I appreciate your generous remarks, Thank you, Regards
Reply
Excellent Neeteshji !! Nice thing to highlight the co-relation. Thank you once again for sharing your knowledge and ideas to help us all understand the markets better and see the larger picture.
+1 Reply
NeeteshJain ShanTrader
Thank you, I wish it adds value to your trading experience. Regards
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