Thursday, February 19, 2015

Nifty Elliott – Neo wave double corrective post pattern implications and two stage confirmation!

Elliott wave defines different patterns. There are standard corrections namely Zigzag, Flat and Triangle
Apart from this there are complex corrective patterns that combine standard corrections with an intervening X waves and forms double Zigzag, Triple Zigzag, Double Flat, Triple Flat, Double / Triple combinations, etc. We do not only apply basic Elliott wave but apply  Advanced concepts of Elliott wave known as Neo wave There are various patterns defined in Neo wave apart from mentioned above. These new patterns are Diametric, Extracting Triangle, Neutral Trianglewave 5 extension terminal pattern. These new patterns as per Neo wave gives a complete different perspective to Elliott wave and we take a step ahead and combine this entire studies along with Time cycles to get important turning junctures.
Now let us analyze how these patterns practically helped us to predict the movement on Nifty. Below is part of the research published in daily research report “The Financial Waves short term update”
On February 13th 2015, we showed the following chart when Nifty was trading near 8710 levels:
Nifty 60 mins chart (as shown on 13th February 2015 morning)

As per research published on 13th February morning before markets opened:
Nifty two stage confirmations as per Neo wave: The break of the 0-b trendline now increases the odds that the entire downside correction from 8996 to 8470 might have completed and this can be the next leg on upside which might lead towards the previous highs.
In short, given the break above 8645 followed by 8700 levels the trend for Nifty is positive with the support of 8600 on downside. At times it is prudent to be quick in changing the stand when markets do not follow the time rules along with price.So a move back above 8645 and 8700 indicates that uptrend might be resuming. On upside further move above 8840 will provide second stage confirmation.
Double corrective post pattern implications: Neo wave –Advance Elliott wave suggests that a double corrective pattern has a post pattern implication of nearly 76.4% to 80%. This means that by analyzing the type of correction we can predict the strength of next trend. This gave the target zone of 8880 to 8900 levels.
Happened: Nifty moved higher and touched the level of 8900 on intraday movement today. Prices reversed back from there and are now trading near 8830 levels. This clearly shows how well the levels are respected and at times even short term forecasting can be done with very high accuracy. However, during middle of correction the predictability reduces. It is still very vital information to accordingly position size the trades.
Isnt it a thrilling experience to see markets moving amidst all the events exactly as per the rules and certain defined patterns?This is the power you can get when you learn about Neo wave which is advanced concepts of Elliott wave and do the forecasting yourself. To learn about this concept of technical analysis attend the two days workshop on Mastering Elliott wave with different Time cycles methods. This is the most exhaustive training on advanced concepts ever conducted. The training is scheduled on 14th and 15th March 2015 in Mumbai combined with more than 100 practical charts! For more information contact us at or call us on +91 22 28831358 / +91 9920422202.

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