Thursday, December 14, 2017

Nifty, Bank Nifty- How to trade using 5 minutes chart on Intraday basis?

Both Nifty and Bank Nifty has been showing volatile movement ahead of Gujarat Assembly Election outcome. Another event was rate hike by FED on 13th December.
Amidst all this markets have been trading volatile and Nifty after showing correction during first half showed sharp recovery in second half of the session. So, is it possible to apply Elliott wave method on a chart as small as 5 minutes?
Nifty 5 minutes chart:

The above chart clearly shows power of Elliott wave applied on as small as 5 minutes chart
Nifty after forming a top in impulse pattern probably in form of wave a of Zigzag correction showed a corrective fall towards 61.8% level on downside. This fall was in complex pattern and prices retraced back the rise in slower time.
As per rule of Zigzag pattern wave (b) should not retrace more than 61.8% of wave (a). We can clearly see that the fall halted exactly at 61.8% retracement level from where there was a sharp rise on upside which is probably the ongoing wave (c).
We have applied similar techniques even on Bank Nifty chart and generated the following intraday calls for our Nifty, Bank Nifty and Equity subscribers
NIFTY FUT BUY ABOVE 10235 SL 10185 TGT1 10260 TGT2 10310
Happened: Nifty made a high at 10297
BANK NIFTY FUT BUY ABOVE 25110 SL 24970 TGT1 25175 TGT2 25320
Happened: Bank Nifty made a high at 25244
We also generated Option calls on both Nifty and Bank Nifty. Below is for reference
NIFTY 10100 CE BUY ABOVE 225 SL 190 TGT1 249 TGT2 279
Happened: Nifty 10100 CE made a high at 271
BANK NIFTY 25000 CE 28TH DEC BUY ABOVE 475 SL 370 TGT1 525 TGT2 624
Happened: Bank Nifty CE 25000 made a high at 528
The above clearly showcase the methods that we use in order to generate Intraday / Positional advisory for our subscribers!
So, will it work always, NO. Elliott wave and other technical methods of forecasting is all about probability. There have been occasions when techniques might not produce desired outcome and so using stoploss is extremely important.
Subscribe NOW to Intraday / Positional advisory and trade using the tools of high probability like Elliott wave, Fibonacci ratios. Also get access to free research reports along with subscription to Stock tips, Nifty tips, Commodity tips. So, how will market behave before assembly election outcome? Do not guess but use systematic method to forecast. Subscribe NOW!

Thursday, December 7, 2017

How to trade Crypto Currency using Technical Analysis?

What is Crypto currency – Bitcoin? Will the buying mania continue? Or Will Bitcoin be responsible this time for the Global crises! Crypto currency is a new age, decentralised, digital currency which works on the mechanism of cryptography. Being decentralised it is not governed by one single monetary or legal authority – See astonishing charts and similarity between movement of Bitcoin and US – DJIA

Cryptocurrency is a new age, decentralised, digital currency which works on the mechanism of cryptography. Being decentralised it is not governed by one single monetary or legal authority. It works through a series of communicating nodes which runs bitcoin software and maintains the blockchain which is the public ledger recording bitcoin. Through mining, the record keeping system, miners keep the blockchain updated, consistent and unalterable. Miners use complex algorithms to mine (or “discover”) bitcoins which are then added to the blockchain. There are various other types of cryptocurrencies like Litecoin(LTC),Ethereum (ETH),Ripple(XRP) etc but Bitcoin remains the most used and traded.

Bitcoin is the first and the most famous cryptocurrency used till date. ……..Recently bitcoin trading has increased significantly, mainly because of the following reasons-

(please refer actual Monthly research report for more details)

See the below charts and you will be thrilled how highly correlated the movement has been between US major index – DJIA and Bitcoins

The above charts clearly highlight the Fractal Nature – It means that irrespective of the markets or assets the basic emotions that drive the prices remains the same. It is Greed, Hope, Fear that are responsible for movement of any asset class.

The above chart shows classical example that everyone is too focused only on Bitcoin but people are forgetting the fact that movement of US major index is mimicking that. The magnitude might be different but the slope of rise looks similar. There also seems to be high correlation between movements of both of these assets which is highlighted by black box.
The Bitcoin mania can be compared to that of the Tulip light bulb mania of 16th century. Prices of Tulip ………………..

I am not here to catch a top in mania but definitely the risk does not justifies entering at current levels. It might very well move higher as measuring people extreme emotions like greed can be everyone’s guess but I think we are nearing that phase and the apocalyptic decline in Bitcoin might be a trigger for Global selloff this time. Food for thought – How will this be correlated to other assets! My take is when you run for cover you do not care what are you selling to save your …..!!!
There are missing text above. To get complete research on Bitcoin subscribe to the Monthly research report.

The Financial Waves Monthly Update is now published. Understanding what is Crypto currency- Bit coin. Nifty outlook with the application of Neo wave, Hurst’s Time cycles. Outlook on Banking Index. Sadbhav Engineering Long term pick. Dow Jones an uncontrollable bull trend. Mutual Fund Section Subscribe to “The Financial Waves Monthly update” and see yourself the long term forecasts and world markets at a glance.


Thursday, November 30, 2017

Nifty: Are we heading for a collapse? Technical indicators getting aligned together!

Nifty and Bank Nifty has shown Gap down opening despite all the euphoria and prevailing optimism across the board. But is it just the start of bigger trend on downside?

Below are a few technical studies that are not sending across very promising sign.  These advanced methods like Elliott wave, Neo wave, Time cycles are all pointing towards one direction which is down and now close below important support levels will provide the much needed price confirmation as well.

We have been constantly mentioning to our clients not to buy the euphoria as the probability of going higher looked bleak. Today’s movement simply reflects power of technical studies. But it is just few hours of move and expiry closing is very crucial. We will come out strong and bold probably against the majority as soon as prices break below important support levels from medium term perspective. Keep tracking “The Financial Waves short term update” for key indicators and levels.

Nifty daily chart: (shown in today’s morning report)

(a portion of the chart is purposely omitted as complete chart is shown in morning report for clients)
Nifty had a positive opening but prices after moving in a narrow range finally gave away and closed near day’s low. Stocks like SBI, LT, ICICI Bank looks like forming a classical distribution pattern and break below support levels can result into sharp decline. It is important to see the closing today on expiry but chances of upward movement is getting bleak as cycles are in sell mode.
As shown on daily chart, we continue to look at ….. days cycle in the topping formation. During the previous wave d fall the cycle started putting pressure during the last few days and it seems the similar action is going to be seen this time as well. We have now completed 41 days and prices are simply failing to move higher despite of all the euphoria which is a sign of caution. Many analyst and traders are super bullish even now and if there is sharp reversal on downside majority will be again caught in surprise. Also this time there will not be deeper upside pullback as the positions will be stuck at higher levels.
It is time to look at the internals very closely. As shown on hourly chart (shown in morning research report), prices are moving exactly as we have been expecting. It is simply consuming time in wave (….) of e which can be complete anytime now. Break below lower Bollinger bands followed by break of …… will be first sign of weakness. This followed by move below ……. will provide two stage negative confirmation. We will revisit this once the first set of supports is broken. 
In short, …………..
The above analysis shows various advanced methods that we use in order to forecast the turning areas despite of all the news or ongoing euphoria. It takes strong belief in the studies that has stood test of time be against the crowd… We have been able to capture major tops earlier as well. Let us see if this time as well the probability favours us else it will only be delayed by few more days!
Get access to The Financial Waves short term update our flagship research report that covers detailed analysis on Nifty, Bank Nifty, stocks using Time cycles, Elliott – Neo wave and other important indicators like RSI, Moving averages. We might just get an excellent trading opportunity once important support levels are broken on closing basis. It is not very often to see such alignment of indicators. You cannot miss this opportunity, See it yourself – Subscribe NOW!

Friday, November 24, 2017

How to trade Nifty using Neo wave and Time cycles? Path ahead!


Neo wave is advanced concept of Elliott wave and by combining with Time cycles we can develop a very strong forecasting technique. at https://www.wavesstrategy.com you can get access to latest research and analysis on Stocks, Commodity, Currency markets. For any queries write to us at helpdesk@wavesstrategy.com or call us on +91 9920422202