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

Thursday, November 23, 2017

Will Nifty 55 days’ Time cycle work again? A trending move should emerge soon!

Nifty has failed to show any positive momentum in this week even after Moody’s upgrade and prices have continued to move in a range. This is in lines with our expectations and the euphoria has simply failed to sustain so far.
We have been using Time cycles to understand important lows and on occasions to see if there is a possibility of top as well.
Look at the below chart of Nifty shown in today’s morning research report – “The Financial Waves short term update”
Nifty daily chart:

Understanding 55 days’ Time cycle: A cycle is an event, such as a price high or low, which repeats itself on a regular basis. Economic movement is highly cyclical and so is stock market movement. Lows are normally used to define cycle length and then project future cycle lows. Cycles follow certain rules which are explained below:
Understanding Harmonicity: Cycles are harmonious in nature and are normally governed by the factor of 2 or at times by factor of 3. This means that as 54 months cycle exists there is 54/3 = 18 months cycle, 18/2 = 9 months cycle. So 54,18 and 9 months become important set of predefined cycles. Similarly there are smaller cycles like 56 days, 28 days, 14 days.
Understanding Synchornicity: This concept of cycle science indicates that cycle lows are synchronous in nature. It means that if the larger cycle is forming a low then the smaller cycle by default forms a low at that point. So a 54 months cycle low will result into lows of 18 months, 9 months and so on.
We have identified 55 days’ Time cycle that has worked well on most of the occasions for catching important lows on Nifty. This cycle if considered from the lows of Demonetization which is 9th November 2016 has helped to capture short term reversal areas. This can be seen on the chart above.
Topping process or distribution is usually seen during second half of cycle. Let us see if this cycle can put pressure after next few days or not.
If you combine Time cycle with Price pattern the accuracy can be increased drastically. Simply imagine the power of forecasting when you see these advanced concepts combined together.
Subscribe NOW The Financial Waves short term update” to see if we are on verge of starting the next strong trending move very soon. Do not miss out the next big opportunity. Visit Pricing Page for subscription options!

Monday, November 20, 2017

Equity markets closed higher after Moody’s rating upgrade but this week movement is crucial!

Following is the English transcript of the article published in Economic Times section of Navbharat Times by Ashish Kyal, CMT published today morning before markets opened.


Moody’s upgraded India credit rating after more than a decade. This is a positive sign both for Indian economy and equity markets from long term perspective. However, valuation concerns remain over short term.
Previously, India rating upgrade by Moody’s happened in 2004 but market showed an up move only for temporary period thereby forming a medium term top which was intact over next few months. So, the extreme bullish optimism that is now prevailing should be seen with caution as valuations continue to be expensive. It is better to invest in stocks that have strong earnings potential and lower debt burden.
Bank Recapitalization doze – After the Bank recapitalization announcement by Finance minister in October of this year we saw sharp rise in stock prices of PSU banking stocks like SBI, PNB, Bank of Baroda, etc. But this only reflects how capital starved banking sector is due to NPA issues. So only recapitalization is not the solution but unless banking sector can reduce their NPA burden and form strong strategy to increase loan off take to quality borrowers the recapitalization can only result into a temporary boost.
Banking performance in coming quarters – It is vital to see if banking stocks over next few quarters can show better results and manages the NPA issue. Lot of money has come into the banking system after Demonetization and Recapitalization but quality loan off take, corporate governance and efficient management is very important.
Banking index: Bank Nifty that tracks the stock price performance of Banking stocks has touched new life time highs and closed at 25728 levels in previous week. PSU and private sector banks both contributed to the rise. One should keep a track on Banking index as this is a leading indicator to see if the ongoing trend is maturing or if there is more steam left in the current rally.
Technical perspective: From technical perspective Sensex had a big Gap up opening on 17th November after Moody’s credit rating upgrade. However, index closed the day at 33342 after touching intraday high of 33520 levels. So some selling was seen at higher levels. For positive trend to continue we should now protect the short term support of 33000 levels.
Week ahead: It is important to see if the Gap of Friday can be protected over next few days else the positive event of ratings upgrade which was awaited for more than a year will only result a spike top. Move above 33520 is required for an up move to resume. In this week we can expect some consolidation between 33520 and 33000 levels before a trending move can be seen!

Wednesday, November 15, 2017

How to trade Reliance Capital? Stock moved brilliantly as expected!!!

Looking at Reliance Capital stock prices many would be in shock to see a fall of 10% in just a day. But was it predictable? Yes, look at the below research published on 8th November 2017.

You can read below to understand the significance of an Impulse pattern if identified correctly. On 8th November 2017 we showed the below chart of Reliance Capital in our daily research report – The Financial Waves short term update and mentioned the following:

Reliance Capital 60 mins chart:

Reliance Capital Happened:

Wave analysis: The following was mentioned on 8th November to our subscribers of short term update
As shown in 60 mins chart, price movement witnessed since September explains the significance of 2-4 trend line concept of wave theory which states that as long as this trendline is protected the ongoing downtrend can continue. This suggests that as long as 590 levels is protected prices will continue to move in downward direction.
We have been bearish on Reliance Capital over past few weeks and has been mentioning the same to our subscribers.
Happened: Reliance Capital move exactly as per the expectations and the stock price witnessed a sharp fall which was well supported by the news on one of its group companies RCOM after defaulting its US dollar based Bonds. The stock has been witnessing lower high lower low formation without any consolidation indicating the strong momentum on downside.
Reliance capital made a low of 400 in today’s session itself falling by more than 10% in single day. It seems the 5th wave is also extending. So what is next??
We cannot be more accurate than this……….
The above charts simply show how one can use impulsive wave from trading perspective.
You can subscribe to this research report The Financial Waves short term update and see yourself how to form trading strategy using Elliott wave and technical analysis methods on Nifty, Bank Nifty, Stocks.
You can also subscribe to Intraday / Positional advisory and get access to intraday stock tips on your mobile via SMS, Yahoo messenger or What’s app

Monday, November 13, 2017

Is correlation between Nifty and Crude Oil a MYTH?

Equity markets and Crude oil relationship are often cited together and it is assumed that rise in Crude oil prices will adversely impact stock market and economy. But is it really true?
Look at the below detailed research that shows that there is no specific correlation between Nifty and Crude Oil. Infact there is more of positive correlation rather than negative.
The below research is picked up from our monthly research report “The Financial Waves Monthly update”published on 6th November 2017, that provides detailed outlook on Nifty, Currency, Sector, Stock pick from investment perspective and much more.
Nifty and Crude Oil- Understanding the relation:

Crude is one of the highly traded energy commodities and keeping close watch on the same is very important. On media or business news channels we have seen many times that experts speak about the impact of Crude prices on Indian Equity Markets. You may have heard that rising crude prices are bad for economy and thus it will have negative impact on stock market or falling crude prices are good for economy. These are the two important phrases which we have seen on media many times. However to be objective in the market, it is very important to look at the trend of each of these asset classes and also to understand if stock market is really moving on back of volatility of Crude or not!
We have placed both these asset classes in the same chart to understand the overall correlation. Here we can see that in the year of 2008 it was the Indian Equity Market which formed a top earlier and then after few months Crude followed the trend of Indian Equities and started to move lower. Post the same in the start of 2009 both these assets formed a low more or less in the same month. From the above chart it can be seen that high direct correlation existed from 2008 till 2010 between Nifty and Crude prices.
In the period from last quarter of 2010 to first quarter of 2011 there was an inverse relation during which Nifty showed sharp fall but Crude continued to move higher. 
From 2011 to the mid of 2013 Crude and Nifty both moved in tandem. This was the period where predictability would have become easier depending upon the trend of other asset class. However this relation fade away and then we witnessed inverse relation from mid of 2013 to the mid of 2015. This was the period when people came out with the frame that falling crude prices are good for Indian Equities. However after mid of 2015 Crude and Nifty both started to move lower.
The period from mid of 2015 to start of 2017 was period again with high correlation and it showed direct relation. Interesting thing to observe was that both these asset classes moved higher together. Isn’t it surprising to see this?
Case in point: From the above observation it can be said there are different periods in which Crude and Nifty had direct and inverse relation.  Here we can also see that period of direct relation was longer than that of inverse relation.
The above chart clearly shows that it is “Myth” that rising Crude prices have negative impact on Indian Equity Market. The fact is that both these asset classes have continued to follow their respective trends in which they existed.
Food for thought: ……..
In short, ………..
The above is part of the research published from “The Financial Waves Monthly update”. If you would like to combine it with short term trading strategy and stock recommendations you can get access to “The Financial Waves short term update” our flagship product providing detailed technical analysis on Nifty, Bank Nifty, stocks and much more. Subscribe NOW

Friday, November 10, 2017

What is Nifty trading strategy using Technical analysis?


Are you anxious seeing the volatility in Nifty lately?
I am sure you are watching price movement closely and trying to figure out what is happening.
Whenever markets are changing the direction it results into spike in volatility and if that reversal is after a sustained trend many will start entering at lower levels expecting prices to go up again.
But this time it can be different, it is therefore important to see How to trade Nifty in coming week?
In my latest webinar you can see what is next from here?

In case you have doubts or queries or share across your charts so everyone can learn at Trader’s Forum.

Have a wonderful weekend!

Nifty is showing high volatility over past few days after reversing from channel resistance. At https://www.wavesstrategy.com we use various methods like Elliott wave, Technical analysis, Candlesticks to forecast the trend and form trading strategy on Nifty, Stocks, Equity

Wednesday, November 8, 2017

Nifty has been moving precisely as per Elliott wave pattern! What is next?

Nifty has given a break below the mark of 10330 in today’s session. So will the downtrend continue?
Nifty selloff seen over past few days might have caught many by surprise but trust me this has been as per the channelling technique and Elliott wave methods I have been talking about over past few days.

We have also published our latest monthly research report “The Financial Waves Monthly update” and mentioned the following:

From trading perspective, it is important to keep a tab on 10500 – 10550 levels where there is confluence of channels which can be seen on the monthly chart in Figure 1. Since this is a big channel the resistance will keep shifting higher with each passing day but the best of the up move might be over and it is time to be alert and not complacent like majority. Keep a tab on ……. levels on downside as move below it will be first sign of weakness… BANG ON!

Look at the trading strategy given over past two days in our “The Financial Waves trading update
Trading strategy given on 7th November 2017 - Short positions can be created on move below 10400 with day's high as stop and target of 10370 or lower. BANG ON! Nifty broke below 10400 and selling pressure intensified on 7th November

Trading Strategy given on 8th November 2017 - Short positions can be created on move below 10340 with 10390 as stop and target of 10290 or lower. BANG ON! Nifty moved precisely as expected and is moving below 10290 levels.

If you would have subscribed to our Intraday / Positional Stock tips, following are the few calls given in today’s session

REPCOHOME FUT SELL BELOW 585 SL 591.4 TGT1 581.1 TGT2 574.7 – Target 2 achieved

CASH CHAMBALFERT SELL BELOW 141.55 SL 142.95 TGT1 140.75 TGT2 139.25 – Target 2 achieved

MRPL FUT SELL BELOW 129 SL 130 TGT1 128.4 TGT2 127.4 – Target 2 achieved

IBULHSGFIN FUT SELL BELOW 1186.2 SL 1196.2 TGT1 1180.2 TGT2 1170.2 - Failed

Please note the above is only for reference and the accuracy cannot be 100%. There will be a few calls that will not be in favour but if we use systematic method of trading then on net basis there is high probability of closing in positive.

Nifty daily chart: published on 2nd November 2017

Following is a part of research report published in morning of 2nd November 2017 - Let us see if this euphoric rise can continue beyond the daily channel resistance which is slowly shifting higher everyday but it is not very far away. On upside 10500 is next hurdle that prices have to cross to continue this momentum ongoing….

The above was published in daily equity research report “The Financial Waves short term update”
Here again is the webinar of last Friday for reference - In my latest webinar published on 3rd November 2017 I mentioned clearly why it is prudent to not get carried away and stay alert. You can see this yourself: How to trade Nifty from here? Will confluence of channels work again?

The above shows the various Equity research products we offer and how they have worked out during the scenario when majority have been complacent. I am not saying we are going down in vertical way but it looks the distribution has started and it is time to be alert and not get carried away in the euphoria!!!

Subscribe NOW The Financial Waves short term update that provide detailed Elliott wave analysis on Nifty, Bank Nifty, stocks with important support and resistance levels. In case you would like to get Intraday / Positional Stock tips register now and get research free along with it.

The Financial Waves Monthly update is now published. See yourself various methods of forecasting across Nifty, Metal Index, Crude, INR and much more in this comprehensive report. Subscribe NOW annually at 30% less price.

Tuesday, November 7, 2017

Is Nifty uptrend in danger? Time to stay alert!

Nifty came close to 10500 levels but failed to take out the highs. It is very important for you to look at the objective Technical analysis methods like Elliott wave, Channels.

In my latest webinar published on 3rd November 2017 I mentioned clearly why it is prudent to not get carried away and stay alert. You can see this yourself: How to trade Nifty from here? Will confluence of channels work again?

It seems the confluence of channels that I talked about in the video update worked out very well so far. It is now time to keep a close tab on the important short term support levels to see if the same can be protected or not.

Nifty 60 mins chart:

Over past few days we have been alerting our subscribers of daily equity research reports – The Financial Waves short term update to keep an eye on important levels and not to leverage much.

In 6th November morning we mentioned that “In short, price movement in this week is important. Let us see if prices can manage to build momentum even above 10500 – 10550 levels where multiple trendlines are intersecting. Failure to do that might result into distribution action. Keep a watch on …….. as short term support in this week.”

We have been using Channelling technique along with indepth analysis using Advanced Elliott wave – Neo wave to understand the maturity of trend. If the support levels are now broken decisively we will get another set of selloff similar to that seen in August and late September.

So, it is now time to be alert and monitor closely if the support levels mentioned in the daily research report is taken out for short term reversal confirmation. The confluence of channel has worked out brilliantly and it has helped us to caution our readers and subscribers when majority of others have been complacent.

Subscribe NOW The Financial Waves short term update that provide detailed Elliott wave analysis on Nifty, Bank Nifty, stocks with important support and resistance levels. In case you would like to get Intraday / Positional Stock tips register now and get research free along with it.

Friday, November 3, 2017

How to trade Nifty from here? Will confluence of channels work again?



I am sure being a trader you will look at the charts and use various indicators.

I have been speaking at lot of corporate and was surprised to see majority tend to leave basic techniques like Channels after they move on to the advanced levels.

In this webinar you can see how price targets can be arrived by using the most basic yet fundamental to technical – Power of Channelling technique

I tend to combine this basic building block with advanced concepts of Elliott wave and Neo wave. 

Have a wonderful weekend and do share across your findings using above technique at our Trader’s Forum

You can visit our Charting page here and plot the charts yourself.

Wednesday, November 1, 2017

Where is LIC Housing Finance headed? Will it reverse on upside?

Where is LIC Housing Finance headed? Will it reverse on upside?

Nifty has continued to hit life time high levels with strong euphoria. However, not all sectors have been contributing in the ongoing up move.

Housing Finance sector which was darling for traders and investors few weeks back is now going through some short term correction.

The below research was published in our daily equity report “The Financial Waves short term update” that showed LIC Housing Finance daily chart as well in addition to below hourly chart.

LIC Housing Finance 60 mins Chart:


Elliott Wave analysis: (picked up from the research published today morning)

Housing Finance sector as a whole has been going through profit booking from last few weeks. In this sector, LIC Housing Finance is one such stock has been going through downward correction since June 2017. In case of any weakness in broader markets, this stock can move lower sharply.

The weekly chart (shown in actual research report) shows that the up move ongoing from the mid of 2013 is corrective in nature and it has been forming Zigzag correction pattern. In the month of March 2016 intermediate wave B completed its course and since then intermediate wave C is running its course. The fall witnessed from 796 to 596 has overlapped with wave i territory which indicates that Ending Diagonal Pattern is under formation. The ongoing fall is in form of minor wave iv which has arrived at the channel support but yet there are no signs of reversal. From last 8 trading session prices have failed to close above prior bars high which suggests ………….

As shown in 60 mins chart, prices have been forming double correction pattern and as of now minute wave c of second correction pattern is ongoing. As per the channeling technique, prices have lot more room to cover on downside and hence any pullback is going to provide shorting opportunity as long as ….. is intact on upside.

In short, LIC Housing Finance trend remains on ………. and prices can move towards …. level where channel support is placed.


The above chart shows how we can apply Elliott wave along with other technical analysis method. You can get access to “The Financial Waves short term update” our flagship research report on Nifty, Bank Nifty and stocks that give trade setup using Elliott wave and various indicators. Subscribe NOW

Friday, October 13, 2017

Nifty at life time highs, Time cycles worked brilliantly, What is next?





Nifty hits life time highs. In this webinar see how Time cycles and Technical analysis helped to capture the move on upside. Visit https://www.wavesstrategy.com for stock tips, Commodity tips, Currency tips..


Wednesday, October 11, 2017

Nifty: How to combine Time cycles with Neo wave?

Nifty has been moving precisely as expected over past few months. We use advanced technical analysis concepts like Elliott wave, Neo wave and Time cycles.

Look at the below chart of Nifty when it was near the low when we published our bullish outlook and also showed the original Time cycles:

Nifty daily chart on 3rd October: showing Time cycles and Neo wave counts

Nifty daily chart: Happened so far:

Following is the research published on 3rd October 2017 in “The Financial Waves short term update”

We are re-visiting the 55 days Time cycle to see if the same can still be considered. If we consider the original 55 days cycle with the low formed on Demonetization day in November 2016 and stay with that then the low formed on 28th September is just a day after the cycle low. This clearly indicates that the original cycle is still very well intact and we are keeping a very close watch on this to see if the low can be protected over next few days or not. You can see my latest webinar explaining the same here - Nifty target achieved near 9700, Will it form short term low?

We have been prudent to turn bearish exactly at the right time thereby allowing us to capture the entire fall and now it is time to see if we the high of Friday near 9854 is broken which will be first positive indication.

As shown on 60 mins chart, (shown in actual research report) given the deeper retracement on upside in the form of wave d there is another possibility that the ongoing pattern can also complete in 5 legged Extracting triangle from the highs of 10145 instead of forming a 7 legged Diametric pattern. So we might have completed wave d at Friday high of 9854 and have started wave e on downside.

If this is indeed an Extracting triangle pattern than a low can be formed soon and prices might not break below 9687 formed on 28th September. BANG ON!

In short, we are keeping a close watch on price movement over next two days to see which levels are taken out from here on. Break above 9854 will be first sign of positivity which will prove validity of Time cycles.

Happened: After forming a low exactly a day after the cycle low, Nifty reversed on upside and protected the lows mentioned in 3rd October research. The low formed at 9687 was indeed protected and prices moved above 9854 and now touched the highs of 10067 levels in today’s session.
This simply shows how well one can capture the trend by following Time cycles with Neo wave analysis.

Subscribe Now to The Financial waves short term update to understand where is Nifty, Bank Nifty, stocks headed from short to medium term perspective. You cannot miss the next big opportunity. Subscribe here

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Thursday, October 5, 2017

Nifty: How to form successful intraday trading strategy based on Elliott wave?

Nifty has been precisely moving as per Elliott wave pattern and you can see how to apply technical analysis to form intraday trading strategy.

Nifty showed huge volatility in last few weeks in which prices first moved lower from 10178 to 9688 level and post the same sharp rise towards 9945 level has been witnessed. However during the same time basic as well as advanced Technical methods have continued to help us to form short to medium term trading strategy.

It is thrilling experience to see that important reversal area has worked well even during the volatile period. Below is the glimpse of trading strategies on Nifty that has worked perfectly in last few weeks:   

Nifty 60 mins chart:

(Below is the part of research published in today morning)

Wave analysis:

RBI maintained status quo on key policy rates in lines with expectations but the important thing to note is that markets continued to rally despite of no strong positive outlook. This is the reason that we say that events can result into short term movement that can last for few minutes to few hours but the original trend eventually resumes that we are seeing on upside.

Bank Nifty showed some underperformance and is yet to take out the highs of 24230 level which is important. Volatility was high as expected but move above 24230 will confirm a positive breakout in this sector. We are keeping a close watch on this.

Nifty after making a low near 9850 levels reversed on upside and continued to move higher towards 9838. So the zone of .. is important support as prices have a Gap area below that. So existing long positions can now use .. as stop level and keep trailing it to make most out of the positive trend…”

Based on the Elliott / Neo wave analysis we generated the following trading strategies published in The Financial Waves Trading update.

Trading Strategy of 4th October 2017:  Nifty can trade volatile in today's session due to monetary policy. For today, long positions can be created on move above 9870 with 9830 as stop and target of 9910. BANG ON!

Happened: It is interesting to see that even on RBI Monetary policy day; Nifty moved in lines with our expectation and achieved our mentioned target levels.

Trading Strategy of 27TH September 2017:  For today, short positions can be created on move below 9840 with 9870 as stop and target of 9810 or lower. BANG ON!

Happened: Nifty moved lower precisely as expected.

Trading Strategy of 25th September 2017: For today, short positions can be created on move below 9950 with 10000 as stop and target of 9900 or lower.

Happened: Nifty broke the level of 9950 and quickly moved below 9900 levels.

Trading Strategy of 21st September 2017: Short positions can be created on move below 10110 with day's high as stop and target of 10070.

Happened: BANG ON! Nifty broke below 10110 and quickly moved below the target level as well.

The above trading strategies clearly indicate the power of technical methods which can help to capitalize in short to medium term trading. Get access to The Financial Waves Trading Update which covers Nifty with intraday trading strategy and The Financial Waves Short Term Update which covers Nifty with 3 different stocks on daily basis.

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