Classic Double Correction PatternThis is a classic example of Double correction (Double three) in HDFCLIFE.
Marked in the first box, we can see Flat Correction where wave B is retraced to the 81% level. We are fulfilling the minimum requirement (61.8%) of wave B. Here in wave C, we see three waves. This is the first hint of an upcoming complex correction. The whole wave is marked as W here.
In the second box, there is a perfect Zig-zag pattern. Wave B is retraced to 50% here. Also, we can see three waves in wave C, which gives us wave Y.
These two waves are connected by wave X which is retraced to 111%.
This is the best example of Double correction.
This analysis is for educational purposes only.
This analysis is based on Elliott Wave theory and Fibonacci analysis.
Elliott Wave
Classical example of Elliott waveClassical example of Elliott wave.
Wave 2 retraced to 61.8% forming Flat correction.
Wave 3 extended to 161.8% forming a normal or trending impulse.
Then wave 4 retraced to 23.6% in Zig-zag form. (This fulfilled the Rule of Alternation)
Wave 5 retraced exactly to its minimum target of 127% retracement. Where cluster of 200% extension was also there. Wave 5 formed in typical Ending diagonal format.
Here bigger wave 1 completed.
Now fall will come in NUVAMA forming bigger wave 2.
Stay Ahead: Essential Tips to Avoid Trading PitfallsHello TradingView Community!
I'm excited to share some valuable insights on trading pitfalls and how to navigate them effectively. Trading in financial markets can be a challenging journey, but understanding common pitfalls and methods to avoid them can significantly enhance your success. Here are 10 pitfalls traders often encounter and actionable strategies to help you steer clear of them:
Having No Trading Plan:
Entering trades without a plan can lead to impulsive decisions. Develop a clear trading plan outlining your goals, strategies, entry and exit points, and risk management.
Using Strategies That Don't Match Your Personality:
Align your trading strategies with your personality, risk tolerance, and lifestyle. A good match helps you stay consistent and focused.
Having Unrealistic Expectations:
Set realistic goals based on your initial capital and risk tolerance. Trading is not a quick path to wealth, so be patient and persistent.
Taking Too Much Risk:
Avoid over-leveraging and using excessive position sizes. Implement risk management techniques like stop-loss orders and diversification.
Not Having Rules to Follow:
Create a set of trading rules to guide your decisions. These rules provide structure and help you stay disciplined.
Not Being Flexible to Market Conditions:
Adaptability is key in trading. Monitor the markets and adjust your strategies as conditions change.
Failing to Take Responsibility for Your Results:
Own your successes and mistakes. This mindset empowers you to learn, grow, and improve your trading.
Being Addicted to Volatility:
While volatility can be exciting, avoid chasing it for thrills. Focus on making well-reasoned decisions based on your plan.
Not Having a Process to Keep Track of Your Performance:
Maintain detailed records of your trades and their outcomes. Analyze this data to identify patterns and refine your strategies.
Not Dealing with Your Emotional Risk:
Emotions can cloud your judgment in trading. Practice emotional intelligence and techniques like meditation or journaling to stay composed.
Neglecting Proper Research and Due Diligence:
Relying solely on tips or rumors can lead to poor decisions. Conduct thorough research and due diligence on potential trades and investments.
Overcomplicating Your Trading Strategy:
Complex strategies may not always lead to better results. Simplify your approach to focus on proven methods and avoid overanalyzing the market.
Ignoring the Importance of Continuous Learning:
The markets evolve, and so should your knowledge and strategies. Stay updated on market trends and continuously educate yourself to stay ahead.
There is no trade without a stop-loss:
This point emphasizes the importance of having a stop-loss in place before entering any trade. It highlights risk management as a fundamental part of trading, ensuring that you have a clear exit strategy to limit potential losses.
If you have to re-analyze charts after being in a trade, you might be going in the wrong direction:
This point underscores the importance of trusting your initial analysis and trading plan. It warns against second-guessing or changing your plan mid-trade, which could indicate you may be heading in the wrong direction.
By implementing these strategies, you can enhance your trading experience and improve your performance over time. Remember, successful trading is a journey that requires discipline, patience, and continuous learning.
I hope you find these insights helpful. Feel free to share your thoughts and experiences in the comments. Let's continue to support each other and grow as a community!
Happy trading!
RK💕
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Adani PowerRules Of Elliott Wave Theory:
#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 never enters the price territory of wave 1.
XAUUSD Elliot Wave LabelingLet’s take this labelling as a case study.
The red ABC pattern is a 3-wave pattern. It’s a correction.
Corrections happen in waves 2 and 4.
This entire correction happened in wave 2. After wave 2 comes wave 3. That sharp upward spike on the right is wave 3. Wave 3 will help price to resume its upward trend.
Now, inside that ABC correction is another correction. It’s a 5-wave pattern called a triangle. A triangle is a wave that is always before the last impulse in a given cycle.
In this case it happened as wave B which was before the last impulse (wave C). It can also happen as wave 4 which is before the last impulse called wave 5.
How To Trade with Neowave Trading IdeaHello Everyone,
Welcome to you all, this is an educational post in which you will learn how to trade with our neowave trading chart. For better understanding also watch the video which will be available soon.
See the below image
## This is how a Neowave structure looks in which a stock price goes up and down.
##These no 12345, I called them motive waves mean trending direction. As you can see these are in diffrent colors. Each color represent a trend cycle mean for how many days this particular stocks is going up or down.
See the below example
## As you can see in below examples , group of smaller cycles made bigger cycles and bigger cycles made more bigger cycles and so on
Example 1
Example 2
## But this hard to understand for ordinary eyes and neowave coding style is always differ between neowave analyst also. For one neowave analyst one trend is short and for other it can be intraday.it just there perspective. For every other person 12345 is create confusion, hard to tell how long this trend will go up. you just dont know this 12345 is short term cycle or longterm cycle.
To solve this i am changing coding style
##As name represent itself its cycles s for short cycles, m for medium cycles and l for longterm cycles.
see the below chart
Now see the below image for another part of neowave which is called correction
## As you know every trending cycles, there comes an consolidation period in which price gives some retracement but never retraced 100 percent of previous trend. This consolidation is represent as correction in neowave.
## This correction comes in same cycles in which the cycles was trend. As you can see short cycles trend in the image, after s5 there comes a flat pattern which is labbeld as SC1, this c stand for correction.same for ther cycles.
These are the list of the cycles which will be labbled in my chart.
See the below chart for complete list.
Now next part is important for you. These are the expected time frame for the repected cycles.
If you love the post than give it a boost and keep following us for more trading idea.
Thank You
Zig Zag corrective pattern and the Case study of Natural GasHello Friends,
Here we had shared some major points and characteristics of Zigzag Correction pattern of Elliott waves.
Also we had shared real example chart study of zigzag pattern as a case study of NaturalGas, in which their are some principles and guidelines, which are perfectly going through in chart of NaturalGas.
Principles and Guidelines of Zigzag correction pattern
1) Zigzag correction pattern is a 3 waves structure which is labelled as A-B-C
3) Subdivision of wave A and C is 5 waves, either impulse or diagonal
4) Wave B can be any corrective structure as 3 subdivisions
5) Zigzag is a 5-3-5 correction structure
Fibonacci measurements
Wave B is always contra trend which generally retraces near 50% or 61.8% of wave A, and can also retraces up to 85.4% to 90% of wave A
Wave C can generally be expected near 100% of wave A, but sometimes if it is extended then it can show 123.6%, 138.2% or up to 161.8% also.
Sometimes if wave C is truncated then it can be near 61.8% of wave A.
But ,If wave C is going more than 161.8% of wave A, then we should be cautious, because it can also be some kind of impulse wave instead of corrective wave.
Case Study of Natural Gas
Natural Gas almost done as expected till now as per zigzag corrective pattern, it would not be wonder if it looks to be doing a double correction higher in wave (ii) bounce & can see 2.786 level sometimes in next week before turning down as a wave (iii) of 5 of (C), On lower time frame if it doesn't crosses high of March 2023, then it can show some down moves to complete wave (iii), (iv) and (v) of 5 of bigger degree wave (C).
After big correction as zigzag pattern which had already reached extreme levels in wave (C) which is more then 123.6% of wave (A), so now anytime it can start fresh impulse moves towards north directions, so instead of finding selling opportunities, one should try to find buying opportunities only after confirmation, and confirmation is price crossing high of march 2023, once its crossed peak point of march 2023 then no selling is recommended, then its only buy on dips with invalidation levels of Low of April 2023 as a stoploss, because it must be ending the bigger correction from last year peak, and can be taken as fresh impulse is started.
I am not Sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Hope this post is helpful to community
Thanks
RK💕
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
EXPANDED / IRREGULAR FLAT CORRECTIONHello Friends,
Here we had shared some major points and characteristics of Expanded Flat Correction also known as Irregular Flat Correction in Elliott waves.
Principles of Irregular / Expanded Flat correction pattern
1) 3 waves corrective pattern which is labelled as A-B-C
2) Subdivision of wave A and B are in 3-3 waves
3) Subdivision of wave C is in 5 waves
4) Wave B of the 3-3-5 pattern completes beyond the starting level of wave A
5) Wave C completes beyond the ending level of wave A
Fibonacci measurements
Wave B is always 123.6% to 138.2% of measurement of wave A
Wave C completes at least 123.6% to 161.8% of wave A which starts from end of wave B
I am not sebi registered analyst.
My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.
Hope this post is helpful to community
Thanks
RK💕
Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!
Disclaimer and Risk Warning.
The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
Basics of Elliot Waves.Hello Traders!
1. Today, we will discuss the basic market movement structure, elliotically . A recent comment on one of my ideas published pointed (indirectly) towards the need for a basic understanding of Elliot Waves for the general trading public.
2. The market moves in consistent impulsive and corrective structures . Waves 1, 2, 3, 4, and 5 together form the 1st Impulsive structure of the market. Waves A, B, and C together form the next Corrective structure of the market.
What is an Impulsive Structure ? These are patterns that occur in the direction of the trend. A movement consisting of 5 smaller cycle waves and following certain set rules/guidelines set by Elliot; Wave 2 never retraces more than 100%, Wave 3 is never the shortest, & Wave 4 does not enter the price territory of Wave 1. The 3rd rule is at times compromised and that should be up for discussion some other day. More rules exist but are not required for the basic understanding of the markets.
What is a Corrective Structure ? We will put this very vaguely. Whatever is not impulsive, is corrective, in laymen's terms.
3. Let's address the Impulsive structure .
Waves 1, 3, and 5 are impulsive waves within the impulsive structure. Waves 2 and 4 of this impulsive structure stand to be corrective. Waves 1, 3, and 5 consist of 5 waves each. Waves 2 and 4 consist of 3 waves each.
4. Now we'll address the next Corrective structure . Wave A and C of this structure are impulsive whereas Wave B is of corrective nature.
Waves in the corrective structure are very interesting. Wave A can at times consist of 5 waves as well as 3, even though impulsive, and can also be a diagonal. Wave B can sometimes contain 5 waves, when in a form of a triangle, even though corrective. Wave C always has only 5 waves and can be a diagonal as well. The corrective waves are a whole lot more complicated and require a vigorous understanding of the structures.
5. Every wave structure is part of a larger wave structure on a larger timeframe. 5 impulsive, 3 corrective waves of the smallest cycle; which will form Waves 1 and 2 of a larger cycle. Then these two waves along with 3, 4, 5, and the next correction set, will form the 1st and 2nd waves of an even larger cycle. This is how our final wave structure (basic) would look like.
The world moves in harmony with progression and recession. And so do the markets. All they need is an observer. Be one.
Happy observing!
Profits,
Market's Mechanic.
NIFTY.. ELLIOT WAVES AND RSI Nifty corrected in a downward Elliot 5-wave pattern. The impulse waves 1, 3, and 5 are equal in length.
The Elliot waves are complete only at the end of the 5th wave of the 5th major wave.
This is also confirmed by the divergence in RSI.
The market is likely to continue its original uptrend after the completion of the downward correction.
Basic patterns of Elliott Wave Theory ExplainedTHE INTRODUCTION
As you all know the waves always moves in zig zag fashion, either it moves up or it moves down, but the pattern always remains same i.e. Zig zag.
So, the most important question is, with which method one can define the trend or some meaningful pattern, which can help anyone to plan his trade & other opportunities.
There are multiple technical indicators available which can help to identify the patterns. However, the method which I use is The great Elliott Wave Theory.
In this post I would like to summarize all of the basic Elliott Wave patterns.
Here, in the Elliott Wave world, waves are always of two types.
1- Impulsive
2- Corrective
CYCLE
Whenever one impulse and corrective waves get combined one cycle is formed.
Here, I have drawn the graphical representation of same.
IMPULSIVE WAVES
A Impulse is the combination of five wave structure, where all five waves are termed as: wave: 1,2,3,4 & 5
SUB STRUCTURE:
Here, wave 1, 3 & 5 always sub divides into five smaller waves (*)
(•)Waves 1 & 5 sometimes also gets converted into leading diagonal & ending diagonal.
And, waves 2 & 4 always gets completed into a combination of three wave s structure. (structures could be simple or complex) (A separate topic) (also called as the corrective waves)
CORRECTIVE WAVES
ZIG ZAG
Zig Zags are the pattern having the combination of three waves. (Wave a, b & c) Where, Wave A, subdivides into five waves , Wave B, sub divides into three waves and, Wave C, sub divides into five waves
Here, I have drawn graphical representation of same.
FLAT
FLATS are the pattern having the combination of three waves. (Wave a, b & c)
Where, Wave A, subdivides into three waves Wave B, sub divides into three waves And, Wave C, sub divides into five waves
Here, I have drawn graphical representation of same.
TRIANGLES
A Triangle is the side ways price moves, bounded by converging trend lines. Internal wave in a triangle sub divides into 5 sub waves, named as A,B,C,D & E which further sub divides into 3 sub waves.
Triangle often called as the terminating waves patterns, as it always terminates the big wave structure.
LEADING DIAGONAL
It consists of five sub-waves, labeled 1-2-3-4-5, Here, waves 1 & 4 always overlaps (exception) & Here, wave 1,3,5 sub divides into 5 sub waves & waves 2,4 sub divides into 3 sub waves.
ENDING DIAGONAL
It also, consists of five sub-waves, labeled 1-2-3-4-5, Here, waves 1 & 4 always overlaps (exception) & Here, wave 1,2,3,4,5 sub divides into 3 sub waves
The patterns explained above are some of the basic patterns of " The Elliott Wave Theory" In future I would to cover separate topic in great detail..
Stay Tuned....
Bank Nifty:Bow-Tie Diametric pattern nearing it's completion#Characteristics of Bow-Tie Diametric pattern
*It's a seven legged Elliot / Neo wave corrective pattern
*Wave A=G,B=F,C=E.wave D is connector.
*Wave B takes less time then wave A took to form,and can correct wave A by more then 61.8%.
#Reasons for not considering this entire swing as an impulse/triangle move
*Wave B has retraced wave A more then 61.8%(In an impulse as per Neo wave , wave 2 does not retrace wave 1 by more then 61.8%)
*Wave B took less time then wave A took to form.(In an impulse as per Neo wave , wave 2 takes more time then wave 1 took to form)
*Wave C has not extended wave A by 161.8%.(In an impulse as per Neo wave ,either wave 3 or wave 5 extend's wave 1 by 161.8%)
*Wave D enter's wave A territory.(Here it doesn't)
#Findings/Analysis of this pattern
*currently we are in 5th leg of this 7 leg's pattern.Price wise pattern has achieved wave E has achieved it's 100% extention target of wave C,hence going forward we can expect a downward movement of price in the form of wave F till 35900(100% extention target of wave B).Post wave F we can expect another move on the upside in the form of wave G(final leg of the pattern) which can take price in between 36850-37400,post which we can expect price to drop till 34250-350 depending upon where wave G ends as per post pattern implication of Diametric pattern.
#Possible Action that can be taken as a trader as per current scenario.
*One should start exiting long's in part's if not fully exiting there long's.
*Should wait for wave G to complete post which one can go short on the faster retracement of wave F's low.
PS:Price path discribed here is an ideal path discribed in books as per Neo wave .Reality can defer.
Disclaimer:Trade should not be taken solely on the basis of this analysis.Posting this just for my future reference.
How To Read Neowave Charts by Neowave ForecastHello Traders and Investors
My Name is Manish Singh and i am an expert in Neowave. In this chart i have describe the coding method to read my charts.
In Neowave Charts Degree labels used as intermediate, primary and cycle degree which is hard to understand by new user. Actually they understand 1 to 5 labels but they dont get the quiet idea in one look in which trend is this count is given. Thats why i came up with something simpler. So i am publishing this in the hope they everyone new trader easily understand the chart that it is in corection or in motive wave and for what time frame.
As they follow my charts, than with time they will understand which degree takes how much amount of time approximately to complete its structure and it surely does in learning the neowave.
Anyway friend kindly tell how you like the idea of this kind of coding.
I am also puting some examples of chart here.
1) This is the chart of nifty in which long term wave is in correction and you can judge with the help of medium wave degree that where is long term wave correction can end or actually new trend is going to start now or it become a failure. you can judge the chart pattern with is also as you can see this is an flat structure.
2) This is another chart of USD/JPY
In this chart i have used the old style of coding so that you can compare which one is easier to understand trend. As you can clearly understand with the help of count that it is going up but you were unable to catch that in which degree it is up or how long it will sustain there. Is there much bigger degree from the current one i am seeing.
EDUCATION- GRAPHICAL DIAGONAL PATTERN IN DETAIL_ELLIOTT WAVEThis is the educational post regarding the types of diagonal patterns-
SUMMERY :
LEADING DIAGONAL
ENDING DIAGONAL
LEADING DIAGONAL
Always form in inner wave of wave (1), so one can expect wave(2,3,4 & 5) within main impulse wave to complete the pattern.
PATTERN:
1- Comprises of (5-3-5-3-5 (inner waves)) or (3-3-3-3-3) (inner waves)
2- wave (4) always overlaps wave (1), but can't go beyond origin of wave (1)
3- wave (3) > wave (1) & wave (5) could be >than wave(1)
4- wave (3) max projection 161.8% (fib ratio) and it can't be shortest wave among all waves
5- wave (5) can't truncate
6- wave (5) max projection 61.% of wave (1) and wave (3), but can't go beyond line joining wave (1) and wave (3)
7- LD can either be expanding(ED), converging (CD) or parallel wedge
To enter in this pattern one should wait for the complete formation of LD and enter after completion of wave (2) after completion of LD !
ENDING DIAGONAL
Always form in inner wave of wave 5 of any impulse. Whenever you are observing, something like ED, one should make sure wave (1), wave (2), wave (3) and wave (4) has been completed so far.
PATTERN
1- Inner structure (3-3-3-3-3) (5 sub waves in total)
2- wave (1), (2) &(3) is always a simple zig-zag
3- wave (2) & (4)could be anything within (a-b-c) pattern
4- Here also, wave (1) and wave (4) overlaps as of LD
5- Wave (3) can't go beyond 161.8% (fib level), as of LD
6- wave (5)can be > = 61.8% of wave (1) and (3) but can't go beyond line joining wave (1) and wave (3)
To enter in this pattern one should wait for the complete formation of ED and enter after completion of wave (5) after completion of ED !
Running triangle Leading and Ending Diagonals
Comparison between Running triangle-Leading and Ending Diagonals
Chart 1 depicts a theoretical structure of Running triangle and an ending diagonal in a down trend.
As mentioned the comparison is in a downtrend. Accordingly downward move is termed as directional move and move to the upside is termed as non-directional.
A running triangle has non-directional momentum ie faster moves to the upside (wave A, C and E) than the downward moves (Waves B and D). These non-directional moves donot retrace the previous move completely.
On the contrary, Ending diagonal has directional momentum ie faster moves to the downside (waves 1, 3 and 5) in the direction of trend and these downward moves completely retrace the previous non-directional corrective moves (wave 2 and 4).
Chart 2 depicts a theoretical structure of Running triangle and an ending diagonal in an uptrend.
Differences in a running triangle and leading diagonal is opposite to that mentioned for downtrend.
As mentioned the comparison is in an uptrend. Accordingly upward move is termed as directional move and move to the downside is termed as non-directional.
A running triangle has non-directional momentum ie faster moves to the downside (wave A, C and E) than the upward moves (Waves B and D). These non-directional moves donot retrace the previous move completely.
On the contrary, Ending diagonal has directional momentum ie faster moves to the upside (waves 1, 3 and 5) in the direction of trend and these upward moves completely retrace the previous non-directional corrective moves (wave 2 and 4).
PART A GRAPHICAL ELLIOTT WAVE IMPULSIVE VIEWTopics covered:
1- Impulsive Elliott wave pattern.
2- Impulsive and Corrective pattern locations.
3- Possible types of pattern.
4- Fibonacci ratio's in brief
5- Rules and Guidelines
Next topic to be coved is Leading diagonal!
Large Base Can Potentially Find ''MULTIBAGGER STOCKS''Nagreeka Exports has BO of long 4.3 yrs base with 7x volume . Can be bought on every dips for the target levels as mentioned on the chart.
Educational Points
Large Base
1 - Early rally
2 - First point of profit booking/sell off
3 - Base formation after profit booking/sell off - this is the point to consider adding the stock to the watchlist(supply getting absorbed) but not in the buy list.
4 - Smart Money action, taking the prices to the previous high which should act as a resistance
5 - JOIN THE PARTY AT BREAKOUT, Important point to consider is Volume at BO
6 - Conservative Confirmed Buying
Examples of Large Base Formation could be Nagreeka Exp
Wish You Happy & safe trading
Views are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk.
"Always Respect Risk"
Happy Trading
Jai Hind Jai Bharat
Bank Nifty:Plan of Action & What FOLLOWED( +18.52% OR +7298 pts)We witnessed an awesome planned fall in Bank Nifty, hope you all enjoyed and made money with the idea.
Lets look at the Plan of Bank Nifty & Nifty
My Favourite Bank Nifty first
& Nifty
Lets dig deep into the structure & my thought process behind it
First thing First "KEEP IT SIMPLE BABY''
Model 1 (ABC(Elliott ABC)/Pole & Flag/ABCD Harmonic Pattern) what ever you call it, its the simplest of the pattern to recognise & trade
Elliott Wave (ZigZag)
- ZigZag is a 3 waves ''Corrective'' structure in bigger 5 wave "Impulse"
- Subdivision is 5-3-5
- Wave B can be any corrective structure ie zigzag-flat-triangle
Fibonacci Relationship between waves are
- Wave C = 61.8%, 100%, 127.2% or max 161.8%(need to be careful while labeling wave C as wave 3 is 161.8% of wave 1)
- Wave B = 50%, 61.8%, 78.6% or 86%
Pole & Flag
- Basically Flag is a pattern which forms after market has moved some distance
- Flag is a consolidation pattern used to participate in the previous move, that can be up or down
- Basic & Logic of the flag is as simple as, any consolidation which is in-between parallel channel
- Trade can be initiated on break of parallel channel
- Fibonacci relation for the flag can be specified in 2 reversal points(Profit Taking Zone)
1) 61.8% projection of first leg, which should end in the range of 'CENTER LINE REVERSAL'' of parallel channel
2) 100% projection of first leg, in this case, price reverse from bottom of the parallel channel
Harmonic Pattern( Bullish ABCD)
In Harmonic Pattern (Bullish ABCD) it is labelled as ABCD, instead of ABC of Elliott wave and all the harmonic patterns are derived form understanding ABCD structure,
Fibonacci Relationship of all legs
BC= 61.8%-78.6% of AB
CD=127.2%-161.8% of BC
CD=AB
CD=127.2%-161.8% of AB
Now lets come back to Bank Nifty Plan
As per the above study, we can easily identify Impulse and Corrections
Points were considered while planning
- the rally following 20 Dec 21:1300 hrs was not Impulsive in nature
- Price was struggling to rise above 61.8%-78.6% fib retracement resistance level & hovering in the range
- 12 Jan-02 Feb-10 Feb formed ''TRIPPLE TOP" with narrow range of 1.38%
- for the said pattern we witnessed a breakdown on 24 Feb 22 on opening candle
Now the some important points to consider from ''Elliott Wave Principles''
- Wave B structure
As per Elliott Wave, Wave B can be a ZigZag, Flat or triangle(TO KEEP IT SIMPLE - not to go in complex corrections)
Possibilities of Correction
Case 1(Zigzag)
Case 2(Flat)
Case 3(Triangle)
Now from the above two patterns we can eliminate which doesn't fits the pattern
Case 1(flag) eliminated
we are not left with case 2 & 3 or say Possibiltiy 2 & 3
As per possibility 2 (flat) we get
As per possibility 3 (Triangle) we get
Both of the labeling stated Bank Nifty & Nifty are heading lower
We will wind up this, you can keep sharing & liking the effort of the author so that I can come up with more in future
Wish You Happy & safe trading
Views are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk.
"Always Respect Risk"
Happy Trading
Jai Hind
-
Trading is like Kids Playing with ABC:Ducon Infratech Trade PlanDear all,
The above chart presents a simplicity of trading, its the heart and soul of trading, let it be a trend following system or investor or day trader or scalper -its as easy as kids ABC
Let me explain my points with the simple yet powerful setup with above chart and more examples:
Points to consider in every setup(conservative)
- Consolidation
- Breakout(A)
- Consolidation
- Retest(B)
- Continuation(C)
- Breakout - As we all know every tick in the market is a confirmation of fight between bulls and bear as bulls want to take prices higher and bears hammer the prices lower, breakout can be understood as a winning the battle and taking the prices higher. And we just have to join the WINNING SIDE in this case its BULLS
- Consolidation - Consolidation can be understood as a laying the foundation for a strong building. In stock market we know it as Flag, triangle, rectangle etc
- Retest - Its like price reversing back to the breakout level & consolidates again and forms patterns as flag, triangle, rectangle etc
- Continuation - Price again breaks out of the consolidation zone and continues
some of the live Nifty examples are mentioned below for better understanding
Some of the Bank Nifty charts for ready reference
Breakdown - retest from bottom & continued lower
Breakout and twice retest
Views are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk.
"Always Respect Risk"
Happy Trading
Jai Hind
Apollo Tyre Research #Elliot_HarishRao Preface
Alright,the operation started after creating an extreme high at 261.25
Apollo Tyre first decline wave (A,B,C)
Asian paints case study: using Elliott wave & price action.
Asian paints had corrected more than 16% in just a month .
After 101 days, the price is back to the strong support zone.
Price has made a kangaroo tail/hammer candlestick pattern on the support zone. 200EMA is also near to price.
Wave principle is also giving a similar explanation.
There are three confirmations to find the ending point of wave four.
1. Price can take 61.8% retracement of the 3rd wave at 2782 , which is also a monthly support level.
2. Wave 4 can end nearby to support area.
3. sub-wave C of wave four is 161.8% of wave A at 2845 .
If the price enters the parallel channel, we will get a candlestick pattern and support zone's demand pressure.
200 EMA is also supporting this statement, which is close to the price. Or we have to wait for the monthly support level where the price is getting support, but entry is not possible without any reversal signal.
If the price isn't giving any reversal signal, the price will fall continuously.
Violation: Wave 4 can never touch wave 1. (at 2692)
I will upload an intraday chart with entry and targets the Asian paints soon.
Part 3: Elliott Wave Principle - Double three correction guideIt looks like mother Sumi has completed the 4th wave correction, and the ending point of the corrective wave (4) is the starting point of wave (5).
Wave (4) is occurring in double three corrections.
A "double three" consists of two corrective patterns, the first labeled W, and the second label Y, separated by a corrective pattern
on the opposite side, which is labeled X.
Wave formations:
Waves W is a zigzag correction pattern.
Wave Y triangle.
Wave X could form any correction pattern.
Wave X is smaller than wave W & Y.
Rules and objectives:
1. Double three is a corrective structure that includes more than one type of corrective pattern.
2. It consists of three waves, which are marked W-X-Y.
3. A triangle may occur only as wave Y in a double three.
4. In most cases, double threes are not deep corrections.
5. wave Y usually ends at 100% – 161.8% Fibonacci extension relative to wave W.
6. Wave Y should not go below the 161.8% Extension of Wave W. It shows that the corrective trend is strong.
7. There never appears to be more than one triangle.
What are the double threes?
Price picks up momentum when it starts an impulsive wave.
After accomplishing the impulsive wave, it corrects the previous move by a three-wave pattern.
These three waves were not enough to complete correction because of the high momentum & directional power of an impulsive wave.
Price creates another three-wave move to complete the correction by merging through intermediate wave X.
Let me make it easy by explaining and structuring examples.
Double three Structure:
Real Example:
