Time and Growth percentage of different waves.

NSE:NIFTY   Nifty 50 Index
Hello Traders!

We recently saw the market analysis of Nifty50 using Elliot wave theory. Elliot wave theory can be very accurate when it comes to the market. You can get the analysis wrong, but if you apply the theory correctly, it can help you in more ways than one.

1. As we see on the chart, Wave 1 and Wave 3 were completed in 62 days each. This is not just a coincidence but an actual observation in Elliot Waves where impulsive waves tend to be in equality or in ratio when it comes to time taken to complete each wave. Since, Wave 1 and Wave 3 took 62 days each, it's very probable that Wave 5 will also take 62 days to complete, i.e., 16th March 2023.

Now, the question might be, how does this help? As traders, we now know that we have to look for long positions till 16th March 2023. We know the trend. Trading against the trend is fun, but only when you have enough to lose a little.

We also know that the downtrend will begin after 16th March 2023 and hence, we will look for shorting positions thereon.

Isn't the date a bit too convenient? Why is Mid-March so hyped?

2. Let's come to Growth percentage. The market grew around 18% in Wave 1 and around 12% in Wave 3. This gives us a ratio of 1.5 and that gives us a value of around 8% for Wave 5. The Nifty50 market will grow 8% which gives us a target of 19200-19300 for Wave 5, again. When dealing with Elliot Waves, we put the most number of 'coincidences' possible in one single bag and then go for the bag. Just too many reasons to expect a good, nice fall from 19200-19300 for a very trending market.

3. Previous analysis attached. Do refer if needed.

The world moves in harmony. And so do the markets. All they need is an observer. Be one.

Happy observing!

Market's Mechanic.


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