Nifty Elliott Wave Pattern with Channels

Nifty advanced Elliott wave – Neo wave plot is unique way of looking at price chart. It helps is identifying each wave movement very clearly. In below research we have shown application of Elliott Wave – Neo Wave pattern, Channels, at its best.

Look at the below chart of Nifty. The below research was published on 04th May 2020 in the morning daily research report –The Financial Waves short term update

Nifty Daily Neo wave plot: (Anticipated as on 04th May 2020 morning before markets opened)

Nifty Elliott Wave Pattern with Channels

Nifty Daily Neo wave plot: (Happened as of now)

Nifty Elliott Wave Pattern with Channels

Wave Analysis

On 4th may as Nifty had broken critical resistance levels above 9600 with a big gap up, most retail participants entered long positions with the fear of missing out on this rally.

But in our Daily nifty research report we had advised our clients to avoid taking long positions as this move was going to be short lived and a failed breakout that would trap the novice traders on the wrong side of the market.

In our daily report on 4th May, we had shown the Neo wave plot of Nifty and anticipated the path it would take even before the gap down! You can see clearly that as we anticipated wave f on the downside and then one last bounce to the upside. This prediction was based on a pattern called the diametric pattern of the Neo wave and the result was we were two steps ahead of the market quite literally!

We have been generating advisory calls on Nifty, Bank Nifty, Stocks, Commodity and Currency using such advanced technical analysis methods and it has worked out extremely well. You can avail combo research at never before pricing under the Summer Offer 2020. Check here

Mentorship June 2020 – I am going to share across how to convert research into a trading signal using the above methods with handholding each of the Mentees and the trades that they are taking. Application of theory along with trading psychology is must to become a successful trader. To register contact on +919920422202 or visit here

Nifty Time Cycles with Neo Wave, Channels, Average, RSI

Nifty has moved against majority who were expecting a sharp rally on upside.Application of Time Cycles with Elliott Wave – Neo Wave, Channels,Moving average and RSI at its best.

Following charts are published in the latest monthly research report – The Financial Waves Monthly update.

Nifty daily chart with Time cycles

Nifty Time Cycles with Neo Wave, Channels, Average, RSI

Nifty hourly chart – Elliott wave counts, Channels, Moving average, RSI

Nifty Time Cycles with Neo Wave, Channels, Average, RSI

Following was mentioned in the monthly research report –

Nifty ??? days Time cycle: We have been trying to search for a cycle that overlapped with the low formed on 24th March 2020, near 7511 levels. This resulted into a …….. days cycle. This is not as per Hurst’s Time cycle method but nevertheless is proving out to be capturing important lows. One can understand that the major lows formed on Nifty has been most of the times on this ……..days cycle with minor deviations only on a few occasions. The next low as per this cycle is near …………..2020. We have already consumed …….. days in this cycle which on an average tops out around …….. days. Moving average difference indicators shown at the bottom of the chart clearly provide cyclicality behaviour and also highlight the overbought zone. The same indicator is now turning back below 0 which means the shorter moving average is crossing back below the bigger average and is entering into the sell cycle mode. Let us see if the crucial support level near 9100 can remain protected or we start seeing accelerated selling pressure below this level which will open up trend towards …….. followed by ………. levels.

(Important levels are omitted from above purposely as shown in the actual research report published to clients)

Nifty hourly chart: Reason for showing this short term chart is to highlight that prices are moving at very important juncture which is the lower red channel.Decisive close below this channel near ……… levels might indicate completion of the entire retracement on upside in form of wave (b) and probable start of wave(c) lower. Also as wave (b) did not consume more time than wave (a) and did not even retrace more than 61.8% of wave (a) there is high possibility that we are either forming an Extracting Triangle or a Diametric pattern. The Diametric pattern will be strongly bearish but it is prudent to take one step at a time and see as and when wave (c) progresses to downside.

In a nutshell, Nifty is now at crucial juncture. Decisive close below …….. will increase the odds of downside breakout for a trend towards ……….

Above clearly shows how various methods can be combined together to derive high conviction trade setups.

Get ready to ride the next big trend again! Will Nifty resume wave (c) lower and if yes what are the target levels. Subscribe to the Monthly research and Short term Equity research report to see how to ride the next big trend. Get access here

Mentorship June 2020 – I am going to share across how to convert research into a trading signal using the above methods with hand holding each of the Mentees and the trades that they are taking. Application of theory along with trading psychology is must to become a successful trader. To register contact on+919920422202 or visit here

Hurst’s Time cycles combined with advanced Elliott wave – Neo wave by Ashish Kyal, CMT

Consideration of time cycles are important because the cycle periodicity can change and so a trader has to keep tweaking the cycle length from time to time to keep it up to the mark with the changing market dynamics. At the same instance, a trade if not timed correctly can result into a non-desirous outcome and it is therefore important to combine the price forecasting tools along with time cycles to understand the major turning junctures. There are recurring cycles in financial markets and by identifying the cyclicality one can forecasts the possible tops or bottoms and accordingly takes trading or investing positions.

J. M. Hurst has defined that there are multiple cycles of different magnitude acting on the market prices. The value of the smaller cycle at that point of time is summed with the value of one bigger cycle which is then summed to the value of a longer cycle. This results into a composite cycle.

He suggested that there are certain standard cycles which are universal and can be applied on any asset classes. Many cycle analysts often complain that cycles vanish without giving prior indication. The major reason being interaction of different cycles of varying magnitude. By combining Time cycles along with Elliott wave it can assist traders in forecasting the trend and it plausible reversal areas.

During complex corrective patterns it becomes difficult to identify the maturity of trend and Time cycles help in a big way. If one is aware that a probable bottom or low should be formed in near vicinity it prepares a trader to take much better trading decisions. At the same time if the cycles have topped out it indicates that the top will not be taken out until the next cycle low is in place. This information becomes all the more important to a derivative trader as they can form an option strategy based on the cycle analysis.

We combine advanced Elliott wave – Neo wave for price forecasting and Time cycles for reversal days. Both combined together provide a holistic approach to the entire trade setup.

This study of cycle analysis is independent of price forecasting that we do using Advanced Elliott wave i.e. Neo wave. Imagine the power if Time cycles and Neo wave price pattern both are in sync and pointing towards same direction.

Mentorship in June 2020 – I always believe that traders are not born but can be made if the necessary discipline, belief and trust in the tools can be inculcated. A mentor reduces the learning that can take years to very short span of time by delivering the exact way in which it can be used. Many videos, concepts are available free online but to select winners it takes certain amount of attention and methods that a mentor can give.

Trust me this as an investment for brighter tomorrow but not just fees for yet another course. I am extremely passionate about what I do and I am thrilled to share my everyday insights with my every mentee.

To know more about the Mentorship program Contact Us here or call on +919920422202

Become a wonderful Trader!

Best,
Ashish Kyal, B.E., MBA, CMT
+91 9920422202

Nifty Ichimoku Cloud, Fibonacci, Island reversal Trade Setup

Nifty is showing wild swings in either direction and majority of the traders are simply guessing the direction of the trend. During such times it is best to rely on important technical indicators like Ichimoku Cloud, Fibonacci and Candlestick patterns.

Look at the below chart of Nifty exhibiting simple tools that can help one stay objective amidst all the news and events.

One important observation is also that in the ongoing eventful month of pandemic the earlier announcement of lockdowns were associated with rise in Nifty and now with relaxations we are witnessing the fall. It is not coincidence but markets are discounting the future.

Nifty daily chart – Ichimoku Cloud, Fibonacci retracement and Island reversal pattern

Nifty daily chart – Ichimoku Cloud, Fibonacci retracement and Island reversal pattern

On 4th May 2020, morning research report – The Financial Waves short term update we mentioned the following – it will be important to see if after the big gap down Nifty can manage to sustain above 9250 levels or not. Decisive break below ………. will resume the bigger downtrend. Unless that happens we can expect prices to move as per path shown on the daily Nifty Neo wave plot. Trade cautiously for now and evaluate the risk before taking any directional bet. Movement in bear market can be sharp and fast and before you can react prices will move. Time to be alert as we mentioned last time as well and now majority will appreciate why we have maintained our cautious stand during the ongoing up move. Let see if we start seeing final wave g minor push after the down leg today itself from here on or prices breach the important channel support near 9150 to resume the bigger degree down move.” BANG ON! Nifty formed a low near 9267 levels so far.

Ichimoku cloud with Island reversal – Look at the above daily chart and see the red highlighted zone which is called the cloud. The cloud area acts as resistance and prices found resistance exactly at the lower end of the cloud before reversing from there. The classic candlestick pattern is known as Island reversal as there was gap on either side of the candle. This is again a reversal pattern. This was also accompanied with 50% Fibonacci retracement of the fall.

As we always say that when there are cluster of evidences all pointing in the same direction it is time to pay heed and not to trade emotionally but objectively. Many traders turned bullish when Nifty crossed above 9800 levels but we maintained our cautious stand and the reasons are well seen here.

Even during this scenario making money by trading derivatives might not be an easy thing. Given the fact that there are Big gaps in either direction it makes converting research into a trade a tough thing. But if only one can keep risk minimal and keep managing it effectively chances of being on right side of the trend remains high.

Simple methods like above can help one stay objective during this downtrend and not get carried away on hopes or other emotional flux. We agree Gaps can distort the trade setup and even the correct strategy might not give desired outcome but one has to keep following such systematic methods over weeks and months and the trust me it only requires a few correct trades to make a killing in this market.

Upcoming Mentorship – If one can combine these methods in disciplined fashion along with advanced Elliott wave, Neo wave it provides a lethal way of trading the markets. A mentor is an important link in all aspects of life who can translate years of experience into a small capsule of time. Register for the upcoming Mentorship in June 2020, Early Bird ends on 10th May. Know more here or contact on +919920422202

Testimonial from existing Mentees

SHILPA PATANKAR : Amazing learning experience in the Mentorship program. Your passion for teaching is commendable. Got a very good insight on how to develop a view on market using Technical analysis. The best part is you are pushing us to form our view rather than taking readymade answers from you…

Nikhil Kohli – Great to have you as a mentor Ashish. It has given me immense confidence to combine all the techniques and build a method, a system for an objective approach to trading. I was always looking for a mentor and I found one in you Ashish. Many thanks

#Nifty Will it Crash again, #Trade setup, Risk management by AK Trading ...

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