Many analysts or traders believe it is better to keep the techniques simple and easy to apply.
But the problem is when markets are moving in complex structure and with sharp reversals it becomes important to combine the advanced concepts together with basic techniques to get high probability trade setups. The movement shown on below chart is an answer to the critics of technical analysis that believes the study produces random effect. See yourself the below chart of Nifty that was published on 5th September 2014 that clearly showed the path we expect prices to follow.
Nifty daily chart published on 05th September 2014 in morning research report
On 5th September 2014 following was published in the morning research report:
On daily chart, we are showing a probable path for next few weeks on Nifty. This is indicating that the overall trend can remain sideways to positive. One minor push on upside from here will complete wave a of second correction. Post which we can see downside pressure for 2 weekstowards 7980 level and then the final leg on upside in form of ……. will be completing a very important pattern. This is a tentative path and more price action from here on will provide further validity. For now, use crucial levels mentioned below from trading perspective.
Happened: Nifty moved exactly as per the trend shown. The magnitude of correction was overshot two days back but it has still been on track with the minor arrows shown on daily chart. For a trader touching the exact levels should be secondary but knowing the important turning areas with respect to time and when to avoid taking a wrong trade is very important! Novice traders probably wait for the exact level to be touched rather than focusing on the overall trend scenario and understanding the maturity of movement.
Elliott wave with time cycles solves many of the mysteries of price movement and equip you with the tool to forecast the markets irrespective of the news or major events!
To see what we expect next from here and if the final trend on upside has started with such sharp reversal or this is just a trap Subscribe NOW to “The Financial Waves short term update”!!!
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