Elliott Wave theory is one of the most accepted and widely used forms of technical analysis. It describes the natural rhythm of crowd psychology in the market, which manifests itself in waves. The essence of Elliott waves is that prices alternate between impulsive phases that establish the trend and corrective phases that retrace the trend. In their most basic and straightforward form, impulses contain 5 lower degree waves and corrections contain 3 lower degree waves.
Elliott Wave is fractal and the underlying pattern remains constant. The 5 + 3 waves define a complete cycle. They can form different patterns such as ending diagonals, expanded flats, zigzag corrections and triangles. Fifteen different degrees of waves can be identified with each of the 5 smart drawing tools, allowing users to visually identify different degrees of waves on a chart. The key to trading Elliott waves successfully is counting them correctly for which there are rules and guidelines.
Nifty is in the correction phase. All 5 waves are completed. Now started the wave A and most possibly end at 10850.
Then wave B will start.
Can take a long position at 10800 levels for the short term with the target of around 11300, then again big correction wave C will start.
I will update the Levels again.
INFOSYS IS SELL FOR TARGETS OF 590-550.
REASONS:
1. IT IS AT A UPPER DIAGONAL OF A RISING WEDGE (BEARISH PATTERN).
2. 5TH WAVE OF DOMINANT WAVE IS COMPLETED. NOW CORRECTIVE WAVES WILL START.
STOPLOSS: "ABOVE SWING HIGH OR AS PER RISK BEARING CAPACITY"
Correction is completed and there is trend reversal observed on the weekly chart.
In current week 1st wave of new cycles is finished and there are chances of small correction and then the 3rd wave will start.
Wave 3 was completed, now in the correction phase. The Wave 4 will end at 50% retracement of Wave 3.
Can setup short selling trade for the 1135 target.
Good Buying opportunity at 1135 level for Long term.
Hello Traders,
Hang Seng closed this week at 25801, a loss of -1.89 (according to teletrader.com). This was the lowest closing since mid-May 2018 and is maybe a wave 4 of Minor degree.
It drops below the blue trend channel that I have marked as important and closed right at the lower line of it. There remain an open Gap at chart, implying the same possibility as ...
Hello everyone,
I've been looking for short move since 2nd week of the September. As shown in chart price is showing sell sign by divergence On RSI and MACD both.
When price move forward in our forecasting direction then Move SL past the entry. If it's not the move down then we again look for the sell opportunities.
Shorted Nifty @ 11735 (Sep futures)
Currently it seems that Wave-III is retracing. Expected range for Wave-IV is between 38.2% & 50% retracement.
There could be volatility and consolidation.
Just closed the short trade at 11455 as I was writing this. About 280 points per lot profit.
Shall enter again on the short side when the levels seem right.
Long entry in Maruti 27th Sep Futures at 9166 on 31st August
- CMP is now at 50% retracement of the rise from 8255.5 (21st May) to 9929 (24th July). To me this seems like the ABC retracement of Wave-V is over and a new Wave-I could be starting. Some consolidation could happen of course, before it rises. (See Daily Chart on right)
- The Daily chart shows very ...
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