Short nifty -- big downfall started target- 16672 , Sl - 17742Elliott wave theory wave count
target 1 -- 17212
target 2 --16919
target 3--16672
target 4-- 16023
Stop loss -- 17742
Motivewave
Nifty is still is in corrective mode, Elliott Wave analysisCheck the chart
Trade not recommended
trade at your own risk
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JSWSTEL, Real-Time illustration of complete ElliottWave-Cycle!For the ElliottWave-Cycle, kind of behavior appears in two different forms on a market chart:
The impulsive move
The corrective move.
Motive Cycle:
The impulsive waves can occur both in an uptrend and a downtrend . Impulse Elliot wave theory summary;
It takes the form of 5+3 wave = 8 Wave patterns.
It has the three waves 1, 3, 5 moving in the direction of the trend, the motive waves, and two waves 2 and 4 which move against the trend.
Waves 1, 3, 5 can further be divided into five smaller wave s each while 2 and 4 into 3’s.
Corrective Wave Cycle:
The corrective wave comprises 3 waves moving in the opposite direction of the initial trend. Corrective patterns Elliot wave theory summary;
This wave pattern can never move beyond the origin of the previous impulse wave.
The letters a, b, c are used to label these waves respectively.
=================RULES======================
The 3 main Elliot wave rule s trading Elliot wave.
Wave 2 never retraces 100% of wave 1
Elliot Wave 3 is never the shortest wave in a completed 5 wave sequence.
Wave 4 cannot retrace into wave 1
Elliott Wave : Nifty 50 - Motive phaseI have plotted only motive phase & will update for corrective phases. I think NIFTY will make the bottom around the 6800 zone. While forecasting the exact bottom is nearly impossible but we can use it to take short term positional trade.
In two of my previous Nifty 50 charts, I have described how bearish candlestick is forming near Elliott wave 4. This further boost our confidence to take short positions.
Assumption:
I am assuming the fall between Feb 10 to 13 March 2020 was biggest fall of this Elliott Wave.
