There are degrees of Elliott Waves starting downwards. I am giving the relevant ones 1. Cycle I 2. Primary ((1)) 3. Intermediate (1) 4. Minor 1 5. Minute ((i)) 6. Minuttee (i) 7. Sub minutte i ii iii iv v 8. Micro ((1)) 9. Sub micro (1) 10. Minuscule 1 ** (( )) means circled. Here we are looking at the completion of sub minutte iii and start of sub minuttee iv , which is a corrective wave . So the long term price chart is intact . Investors need not worry at all .
1. iii = 1.618 i extended from the end of wave ii . Indicates completion. If not a completion a good pause. 2. All the internal counts of wave iii indicate that it has completed a five wave impulse. It contains an extended micro wave ((3)) 3. Corrections in wave 4 position are time corrections and shallow as compared to price correction in wave ii . Correction in wave 2 position are normally 50% to 61.8% of wave i . Corrections in wave 4 positions are 38.2 % of wave 3 . The structure of the correction alternates. Normally we have sharp zig zags in wave 2 and flats or combinations in wave 4 . An Elliott channel drawn connecting wave 1 and wave 3 parallel to wave 2 gives is the end of wave 4 .Or wave 4 ends on the middle line .If wave 4 ends before reaching the channel , it is then redrawn by connecting the end of wave 2 and wave 4 and parallel to wave 1(if wave 3 is very steep) or wave 3. Here wave ii has corrected only 38.2% . So wave 4 corrected shoud be even shallower . May be it will end on the middle line. 4. If the scrip in in 3 of 3 of 3 at any degree it will show highest rsi in overbought zone which will be a multiyear high for RSI on monthly charts . This is the case with HDFC Bank .