Bank Nifty: How precisely RSI and Elliott wave can be combined?

Nifty and Sensex continue to trade in new uncharted territory and Bank Nifty also showed a strong rise after making a low near 27800 levels.

There are simple indicators that can help in capturing the short term reversal and if you combine it with Elliott wave short term pattern it can provide a great insight and trade setup.

Look at the below chart of Bank Nifty which was published in daily equity report “The Financial waves short term update” on 27th August 2018 morning:

Bank Nifty 60 mins chart: Anticipated on 27th August before equity markets opened

Happened:

Elliott Wave analysis: Following was published on 27th August 2018 morning before markets opened

On hourly chart, the previous down move in the index led the prices to break the upward sloping channel which was working pretty well previously.  Currently we are seeing wave b ongoing which looks to be matured. Also, the RSI is quoting at 30 levels exactly the level from where we have seen bounce in the prices in the previous instances. But one needs to stay cautious and wait for price confirmation for taking long positions.

In short, Bank Nifty is at crucial juncture and a break above 28000 is expected to take the prices towards 28200 – 28300 levels whereas a move below 27765 …………

Happened: Bank Nifty reversed back on upside even though it broke below the channel support. This clearly shows that how one can use RSI and Elliott wave combine together to form trading strategy.

Get access to “The Financial Waves short term update” and see yourself why it is important to use trend following method in the ongoing euphoria and avoid shorting unless the support levels are taken out. There have been slow down in momentum but there had been no price confirmation yet for reversal. So what is next? See yourself here

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