Analyzing the wave frm Rs 44 to present price of Rs 340
1. Since the lowest to highest price ratio is more than 3:1 log scale should be used to analyze any chart . But in case of yes bank log scale does not seem to work . Now think why ?
2. Taking the weekly chart.
3. The guideline of channelling will be explored deeper .
4. Remember that wave 1 and 2 formed in Yes Bank is only one type of formation . There are many kinds of wave 1 and 2 formation . We are exploring the one which happens in large cap stocks .
5. Base channel : Join the start of wave 1 and the end of wave 2 and make a parallel channel from the end of wave 1 . The top channel line, If the wave is normal it will give u the end of wave 4 !!!! Wave 4 will end at the top of the channel line or just briefly enter it . In this case wave A of the wave 4 triangle signals the price correction. Rest is time correction. Wave 4 is most probably a triangle Because of alteration and we normally find triangles in wave 4 position . Strategy buy Yes Bank every time it touches the upper channel line. Its the Red Channel
6. Every impulse wave must fall into an Elliott channel . If there are no extended waves then it should fall inside the base channel. It there is wave extension the base channel will be broken . The extended wave should also fall in a channel which is drawn by connecting waves 2 and 4 and drawning a parallel from the top of wave 1 or 3 to give the end of wave 5 . Your count is incorrect if channelling is not harmonious. See the black channel for 1 and 3 (extended) and Mangenta channel for the entire wave frm Rs 44.
1. Since the lowest to highest price ratio is more than 3:1 log scale should be used to analyze any chart . But in case of yes bank log scale does not seem to work . Now think why ?
2. Taking the weekly chart.
3. The guideline of channelling will be explored deeper .
4. Remember that wave 1 and 2 formed in Yes Bank is only one type of formation . There are many kinds of wave 1 and 2 formation . We are exploring the one which happens in large cap stocks .
5. Base channel : Join the start of wave 1 and the end of wave 2 and make a parallel channel from the end of wave 1 . The top channel line, If the wave is normal it will give u the end of wave 4 !!!! Wave 4 will end at the top of the channel line or just briefly enter it . In this case wave A of the wave 4 triangle signals the price correction. Rest is time correction. Wave 4 is most probably a triangle Because of alteration and we normally find triangles in wave 4 position . Strategy buy Yes Bank every time it touches the upper channel line. Its the Red Channel
6. Every impulse wave must fall into an Elliott channel . If there are no extended waves then it should fall inside the base channel. It there is wave extension the base channel will be broken . The extended wave should also fall in a channel which is drawn by connecting waves 2 and 4 and drawning a parallel from the top of wave 1 or 3 to give the end of wave 5 . Your count is incorrect if channelling is not harmonious. See the black channel for 1 and 3 (extended) and Mangenta channel for the entire wave frm Rs 44.