Neo wave is an advanced concept of Elliott wave.
The major difference between a Neo wave and basic Elliott wave is based on the fact that for defining an impulse pattern there are more stringent rules to be applied in case of Neo Wave. The technique has been developed by Mr. Glenn Neely and he postulated more than 15 rules to define an impulse pattern.
The theory is definitely not easy but it is really worth because it drastically reduces the number of probable scenarios. During times when the complex correction is under formation we have to depend on other techniques of technical analysis to understand the pattern. These techniques are right from basicChannels the foundation of technical analysis to the application of Time cycles to understand the probable lows.
The below chart shows the combination of Channels, Time cycles and Neo wave counts applied on Nifty.
Nifty Daily chart:
Nifty Daily chart:
Hurst Time cycle 54 days: Now for someone who does not necessarily practice Time cycles can still look at the chart and conclude that after every 54 days prices are trying to the change the trend from negative to positive. The low made on 16th June is no different. However, we do not use time to forecast price magnitude but for that Advanced Elliott wave is used.
Please understand during period of complex correction it is difficult to conclude with high conviction the pattern under formation but Time cycles are suggesting that August end can be another important low and the tops are usually in between the two cycle lows. This is vital information for a Future or Options trader to form the strategy accordingly.
Above chart shows a Diametric Neo wave pattern has completed important top near 8845 and the primary wave [E] of triangle is ongoing which started in 2008. On upside 8670 can be a very important level to watch…
To know various reasons on why this level will be important and the current pattern under formation Register for the two days training program on Most Advanced Technical analysis training ever – Combining Time cycles and Neo wave to predict the reversal zones along with time! The training will be on 11th and 12th July 2015 by Ashish Kyal, Chartered Market technician (CMT MTA - USA) a frequent speaker on CNBC TV 18 and Zee Business.