1) Wave 2 never retraces more than 100% of wave 1.
2) Wave 3 cannot be the shortest of the three impulse waves, namely waves 1, 3 and 5.
3)Wave 4 does not overlap with the price territory of wave 1
<<Implication of Elliote Wave Rules on Current Market Scenario>>
Rule 1 >> Wave 2 Retracement is only 38.2%
Rule 2 >> Wave 3 Longest among all 5 waves
Rule 3 >> Wave 4 Didn't Overlap Wave 1
<<Current Market Analysis>>
Currently Price has fallen below Wave 3 High and Since 3 consecutive sessions nifty is closing below Wave 3.
It also started forming Lower Top and Lower Bottom as Nifty couldn't cross Wave 5 High.
On recent session Nifty formed Indecisive Candle. So now if Nifty Closes below Current Session low then further down move is expected.
but if it crosses high and closed above it then we see it for up move.
In this week US Election Results are about release and before that formation of indecisive candle clearly indicates that Market players are very
very captious about the same. If we associate it with Analysis then market is at a situation where it almost completed it wave 5 and may be starting stage of Wave A.
If it closes below the current session low then 5 can be considered as completed and Wave A phase will start, which may bring down the Nifty up to the level of 10700-10500 range and then it can retrace for Wave B Move.