Nifty: Neowave Diametric Pattern with Time cycles – Advanced Elliott wave concepts for forecasting trend!

Neo wave has more number of patterns when compared to Elliott wave.

Also there are more than 15 rules in order to identify an impulse pattern. When more number of rules are applied the accuracy increases drastically but also the complexity. There are a few new patterns that are missing in orthodox Elliott wave – Diametric, Extracting Triangle, Neutral triangle, etc. These are very important pattern as majority of the indices are exhibiting this structure. Look at the Nifty chart shown below and how the pattern recognition helped us to forecasts the trend:

Nifty daily chart shown on 3^rd July 2015 monthly research report

Happened: Nifty daily chart showed on 5^th August 2015 monthly update

Happened: Nifty daily chart shown on 4^th September 2015

Happened:

The above charts clearly show that by identifying the pattern earlier on we have been able to very accurately predict the movement of Nifty over past many months. I do not say that the accuracy can be this high everytime as it is all about probability but as long as prices behave as per the pattern forecasted it is prudent to stick with it unless there is deviation from expectations.

Also note that all of these months have been very eventful right from results, China Yuan devaluation,  FED meeting, RBI meeting and much more. Irrespective of these events or news prices continue to move as per the path forecasted for more than a month before in our monthly research report “The Financial Waves Monthly update”.

Now below is a brief excerpt from the 4^th September research report when majority were bearish but we refrained from taking that stand and warned our clients that upside reversal is imperative – “Market leaders are not participating: During the fall in form of wave e the major draggers were commodity stocks – Tatasteel, Hindalco, Industrial stocks – Reliance Industries, ADAG group stocks, Realty stocks like DLF, HDIL, etc. However, each of these stocks has not taken out their respective lows made on 25^th August. The pressure continues to be strong on Banking index that majority expected to strongly outperform just few months back and is now the major dragger. Internal behavior of the leaders protecting the lows is indicating that the downtrend is now in matured stage over short term and there can be upside pullback. Nevertheless unless we see a close above the previous week’s high it is better to avoid catching a low.”

Indian Equity markets behaved exactly as expected in the month of September as well. We have been able to forecasts the trend for Nifty very accurately over past many months now. This simply shows the power of pattern if identified correctly.

As shown in Figure 3, after the sharp selloff in last week of August and early September, majority of the market leaders indeed protected their lows and bounced back. We are seeing pullback in start of October and this can continue for ………….. in the form of wave f of Diametric Pattern.

To know what is next from here in the form of Diametric pattern irrespective of the news or events subscribe now to “The Financial Waves Monthly update” which covers outlook on Nifty, Gold, Silver, USDINR, Global markets, much more. Also get access to daily short term research report “The Financial Waves short term update” Subscribe by simply visiting Pricing Page or Contact US for more details.