ignore the previous chart
look in this chart
1. Five primary waves seem to be over .
2, We may be the middle of a flat correct .
3. We may be currently running B wave of the flat correction . B waves are normally zig-zags. 5-3-5. So it will be an impulse or and ending diagonal. It is an impulse in this case.
4. Wave A = Wave B at 9805 .
5. The RSI in this B wave has not gone into overbought zone on monthly chart . Had it been a 1-2-3 RSI would be in overbought zone. THIS IS VERY IMPORTANT.It shows inherent weakness.
6. Personality of B waves states that large caps issues will be sluggish and cheapies will sky rocket .
7. If Nifty goes below 8560.
The other scenario is a 5th wave extension . Only if RSI goes into overbought zone . Where there is no wave 4 triangle . I will also post that if u want.
thanks for the chart ,
out of curiosity - Does the RSI goes into the overbought territory in an impulsive wave ? i have never used it !
Which one book you will recommend for elliott wave ? (as you are a certified analyst yourself !)
RSI goes into overbought territory in wave 3 of 3 and is at the highest .
You can read and digest this book The Elliott Principle by Pretcher and Frost. 4 more info go to elliottwave.com