Indian equity markets touched new life time highs after another surprise rate cut by RBI by 25 bps today morning.
This step was sufficient to take Nifty above 9100 mark and Sensex above 30000 levels even though momentarily. Also this move has created enough positive euphoria although the participation is limited to few large caps. During such scenario it becomes all the more important to rely on advanced concepts of Technical analysis like Advanced Elliott wave – Neo wave along with Time cycles, Channels and Fibonacci ratios.
Is it time for fresh Investments or enter long positions now based on news or event or is the trend in matured stage? We use Advanced concepts of Elliott wave – Neo wave to understand the maturity of trend and stay objective at times when crowd is on other side! See below chart of Nifty along with Terminal pattern .
Hurst 54 days Time cycles
Nifty 60 mins chart: Neo wave Terminal pattern
Neo wave analysis & Time cycles:
Time cycles:Hurst suggested a few standardized Time cycles that across the asset classes tend to follow. These standard cycles are known as nominal cycle. 55 days is one of the Nominal cycle Hurst defined. It is really amazing to see how well this cycle is followed by Nifty. 54 days is close to the Nominal cycle and has been responsible for forming important lows. Also we can note that the tops are formed approximately 15 to 20 daysprior to the lows. Nifty has now entered into this topping zone as per the daily chart shown above. However, there is no price confirmation as of now and now knowing the Time cycle help we understand the Neo wave pattern which is explained below.
Neo wave Terminal pattern: is a part of impulse pattern where each of the legs is in corrective fashion where wave iv will overlap with wave ii (variation to basic Elliott wave where overlap with wave i is required). Also the momentum will be slow and on reversal confirmation the entire pattern is retraced in half or 1/4th of the time wave c took to form. This is a very strong post pattern implication. So the Time cycles and Neo wave counts are getting synchronized again after many weeks. We beg to differ from the majority and not buying in story of next strong uptrend is resuming. Not because we are biased but our advanced concepts shown above suggests otherwise.
To know the which are the crucial level one should keep an eye for confirmation of reversal you can subscribe to “The Financial Waves short term update”. Trust me such alignment do not happen very often but when it does it is worth to PAY ATTENTION!
Attend the 2 days training workshop that will provide in-depth analysis on Advanced concepts of Elliott wave –Neo wave and how it can be combined with Time cycles. This is one of the most advanced training in technical analysis. It focuses not only on Price but also on Time which is an important element for any trader or investor. There are no shortcuts to Trade or Invest profitably. It comes with lot of research, psychology, objectivity, tested methods. The above study ensures increasing the probability of success while trading and also highlights the area when one should be patient and avoid taking positions. Making money is one thing but to preserve what is made is the Key to trading success!!!
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