# Elliotical approach to Nifty50 Long.

Long
Updated
NSE:NIFTY   Nifty 50 Index

1. We can see an ending diagonal forming on the Nifty50 chart on the 1hr tf.

2. The retracement levels have been mentioned which gives us more evidence of the market following the wave pattern.

3. We see a strong trend resistance of the market. Once the resistance is cleared, we can look forwards to buying calls or selling puts, whatever suits the individual.

4. Let's talk about wave equality. In an impulse, the 3 motive waves (motive wave is just the wave that is going with the trend, i.e., wave 1, wave 3 and wave 5), tend to be in a harmonic ratio. There can be multiple scenarios aka ratios and 61.8% (the favourite of the public XD) is obviously one of them. As we can see on the chart, Wave 3 is almost 61.8% of Wave 1. This gives us a picture that the possibility of Wave 5 being 61.8% of Wave 3 is pretty high. Of course, that may change, but too high a chance to just ignore. That sets us a target of 19200 to 19300 for Nifty50.

5. Another point that must be noted is that when we put 61.8% as a retracement level on wave 2 and use it as a Fibonacci divider, it also gives us the same target of 19200 to 19300. This is out of the books and just an observation.

6. The triangle that we see is a questionable. Because we haven't so far seen a triangle form for wave 4 inside a diagonal. But if this works out as predicted, then that should be the most likely picture, a triangle can be there inside a diagonal. And before anybody questions, I have scoured certain books and haven't found any reference for a triangle inside a diagonal. Anybody having a better idea or picture is welcome to comment on it.

7. We also have a two bar reversal on the daily tf. Confirmation for that will be the break of high of the higher candle.

8. And, apart from everything, we work in the field that has infinite possibilities for every individual and hence itself has uncountable possibilities. We just get better at predicting the best possible outcome. So yes, even though the possibility for Nifty50 giving a breakdown, as far as I'm concerned, is very unlikely, it is still there.

Do use proper risk management.