Monday, February 27, 2017

Nifty Fractal Nature worked brilliantly! What is next?

Understanding the Nifty trend with Fractal nature along with Elliott wave, Channels and RSI!

What is Fractal Nature: Nature exhibits Fractal nature across the universe. This nature is exhibited even by stock markets. Similar patterns are repeated across different degrees of time which is termed as Fractal Nature.

Based on the same concepts we published research on Nifty identifying Fractal nature on 60 mins chart. The part of the same is taken from “The Financial Waves Short Term Update” published on 17th February 2017.

Nifty 60 mins chart: (Anticipated in the morning of 17th February 2017)

 Nifty 60 mins chart: (Happened till now)

(Part of research taken from 17th February 2017)

Wave analysis:

“On Nifty, the pattern seen over past few days look very similar to that seen during the previous wave x formation. This is highlighted on the hourly chart. It is interesting to see how closely both the patterns resemble. The previous wave x formed a low near 8327 on 23rd January. During this move as well, the fall was sharp but only to form wave x. Failure to see follow-up selling below previous day low the chances of another wave x formed at the lows near 8715 is high. If Fractal nature is into play then we can expect a break on upside like the ones seen in earlier pattern.

For a trader it is not easy to change the stand very quickly. But in this dynamic environment when markets are moving very fast it is best to adapt to the new price information as quickly as possible. In case Nifty manages to decisively break above 8825 resistance zone we can expect sudden spurt on upside due to short squeeze and fresh long build up.”

Nifty gave a positive breakout as expected and prices moved from the levels of 8760-8770 to recent highs of 8980 based on Fractal nature. In the current market trailing stop method is the ideal strategy to capitalize the trend as long as it goes!

To know the Elliott wave pattern along with important levels on Nifty and 3 stocks, subscribe to “The Financial Waves Short Term Update” and selecting the Equity research report Services

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