Nifty Using Ichimoku cloud, MACD and Neo Wave Pattern

 Elliott wave and Neo wave are powerful technical analysis methods that can help traders with the complete setup right from Intraday to positional trades.

Below shows Nifty Neo wave count along with Ichimoku Cloud and MACD. This research is picked up from the daily Equity research report. “The Financial Waves short term update" which was published today before market opens

Nifty Daily chart

Nifty 60 mins chart

In the previous session, after opening with a minor gap up, prices could not sustain higher and sharp fall was witnessed which led prices to make low of 18060.40.

On the daily chart, The Nifty50 has snapped a three-day losing streak and closed on a positive note. Nifty managed to close above 18200 mark and formed a hammer type candle on the daily charts. Price has bounced back from the major support of 18060 and since then short covering was seen which led prices to close above 18200 mark near day’s high. Prices have bounced back on the upside by taking support of the base line. 

On an hourly chart, prices have moved up precisely by taking support of the channel which is a positive sign. Simple channelling techniques works well! Also, MACD has shown a positive crossover giving us hints of further possible up move. We need decisive break above 18300 for fresh buying to emerge.

As per wave perspective, prices are moving in Diametric pattern and as per neo wave prices completed wave (c) at the top and now wave (d) is moving on the downside. Any breach above 18300 can confirm the completion of (d) on the downside and then the rise will be in the form of wave (e).

In short, Nifty has snapped a three-day losing streak and closed on a positive note. For now, any breach below 18060 can drag the price lower till 17960. Whereas any breach above 18300 is needed for the fresh buying to emerge which can take prices higher 18400.

3 Months of Mentorship on Timing the Market – Above chart simply shows how price action along with Time cycle and Neo wave can be combined. A Mentor can ensure that proper application of these methods is passed across so that it can form a powerful system to generate that parallel source of income. Be a part of Elite traders community we call as #TimeTraders. 

ICICI Bank: Combination of Elliott wave, Time Cycles, Trendlines, Channels, MACD!

Technical analysis applied on stocks – ICICI Bank. The below research shows application of Elliott wave, Time cycles, Channels and MACD.

Stock market exhibits the cyclical nature and to understand the same we apply different Time cycles to know if important top or low is in place or not. As per Hurst’s Time cycles, capturing the low can be easier than top as distribution process takes time and hence validity of cycles can be in question.

Nevertheless we follow normal cycles also which works well on particular stock or index. Below we have shown example of ICICI Bank which is taken from “The Financial Waves Short Term Update” which was published in today’s morning report. Here we have shown 69 days Time cycles which is working as topping cycle since April 2016.

Isn’t it interesting to see that how precisely this stock is following time cycles?  

ICICI Bank daily chart:

(Part of research published today morning)

Wave analysis:

“Stocks like Axis Bank and ICICI Bank has been moving in non trending environment from last few days. Looking at the short term structure of these stocks and failure of Bank Nifty to generate the upside momentum, there is high probability that distribution might be under process. However it is better to wait for price confirmation which will guide the trend ahead.

As shown in daily chart ICICI Bank, it has been trading in expanding structure since April 2016 and from last few days prices are moving in the range as it has tested the important trendline resistance. Along with this, Time cycle of 69 days which has formed crucial tops and this time also cycle looks to have worked well as prices have not taken out resistance area. MACD is already showing negativity as it has given sell signal. Now break below pivot low will confirm that downside trend has started.

(60 mins chart is not shown here which shows internal wave structure)

As shown in 60 mins chart, prices have till now completed double correction pattern and post that some pressure has been witnessed in last few sessions. The current downfall has broken the channel support and move below …… will indicate that retracement on downside in form of minor wave … of third standard correction has started.

In short, ………….

Elliott wave, Time Cycles and other basic technical concepts can help traders to form trading strategies with prudent risk reward ratio. Get your copy of “The Financial Waves Short Term Update” which covers in-depth research on Nifty and 3 stocks on daily basis.

Most Advanced Technical analysis training EVER – Nifty has arrived at important juncture and despite majority turned bullish prices have not headed anywhere over past two weeks. This looks like a classical case of distribution. During such times it is prudent to learn the methods and indicators that help us to time the turn and capture the trend when it is just starting. Learn Elliott – Neo wave combined with Hurst’s time cycles and Gann analysis. I will be discussing various methods I personally follow to derive at trading decisions. Training is scheduled on 29th – 30th July 2017. Know More

ICICI Bank: Neo wave Extracting Triangle Pattern and Topping Time cycles!

Identifying the Neo wave pattern and Time cycles to understand the trend of ICICI Bank.

Neo wave is the advanced Elliott wave concept has more than 15 rules which should be followed for impulsive waves. If one of the rules is not met then pattern is simply corrective in nature. Neo wave has introduced a few newer patterns which is not covered in Elliott wave such as Diametric pattern, Neutral Triangle pattern, Extracting Triangle pattern. These all patterns are corrective in nature and have different rules. Below we have shown daily chart of ICICI Bank which shows that second correction is forming Extracting Triangle pattern. Here we can see that downside legs are getting bigger whereas upside legs are smaller in nature. Apart from that there is 70 days Time cycle which is working as topping one from the start of 2016. Below we have shown part of research taken from “The Financial Waves Short Term Update”.   

ICICI Bank daily chart:

 Wave analysis:

“As shown in daily chart of ICICI Bank, since 2016 this stock has continued to move in an upward moving channel. This time prices have failed to reach towards the channel resistance and have started to show weakness. Moreover this reversal has taken place when 70 days Time cycle was due in last week. This cycle has worked as important topping cycle in the past occasions and hence one should not ignore the same. In the current week prices have taken out low of prior week’s lows which will keep bias on negative side. MACD is also moving below signal line which indicates bearishness.

(The internal wave counts is shown on 60 mins chart which is shown in original report)

As shown in 60 mins chart, recently prices have broken the blue channel support and as of now hovering around the same. The fall was sharp in nature which increases the odd that minute wave (e) of minor wave e might have completed. Prices have also formed tilted Head and shoulder pattern which is a reversal pattern and forms during the stage of distribution. On upside ……. is the important resistance.

In short, ICICI Bank is now at important levels. Close below ….followed by break of low of wave (d) near ….will confirm the bearish outlook. Please note breaking of pivot support levels is important in the current market scenario.”

To know in-depth research on Nifty and 3 stocks on daily basis subscribe to “The Financial Waves Short Term Update”

Training on Time cycles using Gann, Hurst’s method combining with Neo wave – Advanced Elliott wave – Attend the two days seminar on 18th and 19th March 2017 – Most advanced technical analysis training ever. These methods are not easy to implement so you can share across your charts and findings on our Discussion Forums and get inputs to keep the learning ongoing in most practical ways. More details on Neo wave and Time cycles. Few Seats left. This can be one of the best investments you can make!

Nifty – Elliott wave with Time cycles, Bollinger Bands®, OBV, MACD all pointing in same direction!

Nifty had shown a sharp sell-off in today’s trading session and also breached below the previous low of 8525.

The scenario was exactly opposite just few days back when prices rallied sharply from the lows of 8440 and gained nearly 160 points making a high of 8530. Post that there has been lot of positive news flow and majority expected that the subdued inflation data will force RBI to cut interest rates earlier than expected which will boost the equity markets. However, we refrain from commenting that a rate cut will necessarily result into positive close on markets. Infact, the top made in March 2015 at the high of 9119 was exactly on the rate cut day. Case in point: It is better to avoid basing the trading decisions on an event but rather applying the objective techniques.

Below research shows how we have combined Elliott wave along with Time cycles, Bollinger Bands, On Balance Volume (OBV), MACD indicators and majority of them pointing in the same direction. Nevertheless, Risk Management and Money Management also plays a very vital role in trading…

The below excerpt is picked up from “The Financial Waves short term update” daily research report published in morning of 20^th August 2015 to paid clients.

Bottom Line: Nifty looks to be in final stages of completing the sideways action. A trending move is now due to emerge!

Nifty daily chart:

Wave analysis:

In previous update we mentioned that “On Balance Volume (OBV) which measures buying and selling pressure as a cumulative indicator. OBV was unable to take out the pivot high…. This suggests that up move is supported by weaker hands and current consolidation can be in form of distribution pattern”

Nifty has continued to move in lackluster fashion from last 3 days. In the last session prices moved lower till 8425 level however post that Nifty managed to recover and closed at 8495 levels. The important thing to note is that prices are failing to move above the high of 8530 made on 17^th August 2015. The rise of 160 points on Monday was simply euphoric which is so far not supported by majority of the stocks that contributed during the fall. It is simply reflecting that the overall strength has failed to emerge after rise of just 1 day.

MACD indicator on the daily scale has continued to be in the sell mode. MACD line (red) has been taking resistance to the blue signal line which is the average of MACD. Each indicator has its own interpretation and during times when the direction is unclear it is prudent to applying different techniques and try to understand the direction that majority of indicators are suggesting. In previous update we mentioned about On Balance Volume (OBV) indicator which pointed towards distribution rather than accumulation. Even MACD continue to be in sell mode. A declining red line means short term moving average is approaching close to the longer moving average and a cross below 0 will give negative MA crossover.

Bollinger Bands: Nevertheless, price confirmation is going to be crucial and our expectations continue to be of downside breakout the confirmation of which will be on move below ………. This is also the lower end of the daily Bollinger Bands. The previous pivot low was also on this band. So a decisive break of this level will point towards strong trending move which is now due anytime soon!

As shown on hourly chart, (shown in actual research report published in morning) the previous pivot highs have been missed by 5 points consecutively for 3^rd time. Also, prices formed lower high and lower low as per daily bar technique. Now a close below ……… will confirm short term downside reversal providing first negative confirmation. Second stage negative confirmation as per Advanced Elliott wave will be on faster move below ……… which will indicate that the upside correction from 7940 is complete and medium term downside trend has resumed.

In a nutshell, a trending move is now due to emerge……..Stay alert as Nifty can come out of Hibernation very soon!

Today’s movement so far is clear indication of how fast a trending move can emerge. Majority might be complacent during the sideways action whereas we expected a strong trending move to emerge. It is also important to know the Elliott wave counts to understand the probable turning areas and for risk management levels.

Subscribe NOW to “The Financial Waves short term update” and look yourself various scientific and objective techniques that are pointing towards the same probable outcome. For subscription options visit Pricing Page orContact US

Trading Nifty using indicators – Elliott wave, MACD, Time cycles, Channels! Catching reversals!

Nifty has given away more than 400 points in less than 4 days.

This might be a surprise to the short term traders or investors but using the objective techniques of Elliott wave, MACD, Channels on the short term charts can help you capture key reversal areas.

Many might argue and come out with fundamental justifications after the fall has happened. But is it possible to predict the movement before it even started? The answer is definitely “YES” with a given degree of probability!

We have published article few days back showing our prediction of 27^th March that clearly showed the rally towards 8800 and then sharp fall from there. You can scroll few days back and check this article. Now below we are showing the short term techniques we used to time the market movement! Read below if you want to get more thrilled!!!

Nifty 60 mins chart: Anticipated on 16^th April 2015 (published in morning research report)

Happened: closing of 20th April 2015

Wave Analysis:

The following was published on 16^th April 2015 –

“Nifty had sharp reversal at 2:50 pm and lost nearly 100 points in nearly 10 minutes. We have been clearly warning about such moves which should not be a surprise to our subscribers. The major reason being that in the entire up move from 8270 levels there has been sharp reversals on downside and also the wave counts internally was suggesting that the rally is near completion. Also final leg wave c of second correction formed a wedge shaped – Ending diagonal pattern that warrants such sharp reversal.

We showed the path of Nifty on 27^th March morning when prices closed near the day’s low of 8270 levels. It takes lot of belief in the objective techniques to mark the reversal on upside from there which clearly showed an up move till 8800 - 8830 levels which will complete wave (e) and then a move back on downside.Happened: Nifty has followed this path to the point along with time as well and reversed on the 49^th day cycle.

Word of caution: If Nifty is indeed starting a major leg on downside we should see some serious selloff from here over next few weeks. In short, move below 8700 will confirm negative outlook on Nifty with resistance of 8830 on upside preferably on closing basis. Volatility can be high from here and existing short positions should now use 8830 as stoploss and follow trailing stop method in case this move develops into a bigger selloff from here!”

The following was published on 17th April 2015 –

“Over short term, Nifty has taken out the important support of 8680 – 8700 as well on intraday basis. If this is indeed start of important trend then the top at 8800 should remain protected. So existing short positions should now trail stop towards 8800 and ride the trend as long as it lasts.

Short term MACD indicator shown on hourly chart has also move decisively below the signal line along with negative divergence with prices. Such minor negative divergences which are very important might be missed out on RSI as it is a bounded and range bound signal. It is therefore important to use one bounded like RSI and one non bounded indicator like MACD to gauge the internal strength and momentum. In short, trend for Nifty has reversed & one should avoid catching a low in this down move. The trend can be fast and sharp.”

Happened: Nifty followed the path exactly as expected. It is only because of the belief in the objective techniques mentioned above that we are able to capture the entire down move so far. Since 27th March 2015 we have been able to capture nearly 500 points on upside on Nifty and now nearly 400 points down fall and counting….

What is next from here? You will have to subscribe for that to the daily equity research report “The Financial Waves short term update”. Visit Pricing page for subscription options and get insight into Nifty along with periodic update on Bank Nifty and three different stocks provide good short term trading opportunities. Trust me, this can be the best investment you have made so far!

Now post your charts with Technical Study and start the discussion on our Discussion Forum Page and get it answered by our experts. To post your chart now visithttp://www.wavesstrategy.com/Discussion/Discussions.aspx?type=start Call us on +91 9920422202/ +91 22 28831358 for any other details

Nifty Elliott wave, Bollinger Bands®, MACD Trading Strategy before Budget!

Bottom Line: Nifty failed to close above 8900 or below 8800 and continued to move in a range. Break of either levels awaited for clear trend to emerge!

The below research was published today morning before equity markets opened in "The Financial Waves short term update" by Waves Strategy Advisors

Nifty daily chart:

Nifty 60 mins chart:

Elliott Wave Analysis:

Nifty had a range bound movement in previous week with prices touching the high of 8913 and low of 8793. There is a weekly Doji bar formation and a break of the range is important for clear direction ahead. Within this range IT stocks showed some outperformance and Bank Nifty failed to show any strong bounce back. Nifty has retraced around 80% of the previous down move whereas on other hand Bank Nifty which was leading the rally retraced only 50% of the entire down move. Also the bounce back in Bank Nifty is in overlapping formation so far which is not a good sign from medium term perspective. From weekly perspective, decisive break above 8913 will resume the positive trend whereas close below 8790 can result into short term downside reversal.

The recent up move which started in form of wave (c) of e from 8600 levels has so far taken 6 trading days. So a faster move back below 8600 in less than 6 days will indicate medium term reversal to downside. This will break the pivot level in lesser amount of time the up move took to form. Short term moving average of 20 days is also acting as an important proxy for trend. The support as per this average is also near 8600 levels.  

The movement of past few days has been exactly within the Bollinger Bands as shown on hourly chart. Prices have been moving sharply within the range but only to take support near the lower and upper areas of the Bollinger Bands. When on Thursday there was a strong move towards 8913 we expected a break on upside. However, prices reversed the very next day back towards 8800 support area. So now it is prudent to wait for an hourly close above 8913 or below 8790 for confirmation of the break of the band and start of the trend in that direction.

Range bound action has kept both Flat pattern and Triangle pattern possibility open. As mentioned above a faster reversal below 8600 will confirm truncation of wave (c) of e at the highs whereas on other side slower movement from here will indicate wave (d) of e is forming within a triangle pattern.

In short, Nifty is currently moving in a range but a clear trend should emerge on break of mentioned levels in this week. Leading sectors have failed to show any upside momentum which is a cautious sign and close below 8790 will result into short term downside reversal. Volatility can be high in current week ahead of Budget!

Attend the most comprehensive training on "Mastering Elliott wave - Neo wave with different Time cycle methods applied on more than 100 charts" The training is scheduled on 14th & 15th March in Mumbai at Grand Sarovar Hotel. For registration contact us at helpdesk@wavesstrategy.com or call on +91 22 28831358 / +91 9920422202

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How to apply MACD, Time Cycles, DMI indicators on stocks?

In technical analysis there are more than 100 indicators that can be used and applied on stocks. 

But trust me most of the indicators gives similar output. It is better to stick with 3 to 4 indicators that you are most comfortable with and understand it completely. Many of the books and if you search online using Google search will give you very crude way to use these indicators for simply overbought or oversold conditions which are wrongly pre-defined as 70 and 30 levels on RSI. The reason I say these levels as incorrect because during strong bull trend RSI will easily reach 80 to 85 levels and during strong down trend RSI reading of 20 is fairly common. For optimum use of RSI try to see the levels from where RSI has turned previously or in short which level is acting as support and resistance – in a similar way we identify supports and resistances for stocks.

The below article highlights on how do we combined indicators like MACD, Time Cycles and advanced concepts like Directional Movement Indicator. The complete strategy is not revealed which is mentioned in today’s morning research report.

Kotak Bank Daily chart:

Wave Analysis:

As shown in Daily chart of Kotak Bank, since mid 2011 prices are well intact in the upward moving channel. Recently in mid June 2014 prices broke above the channel resistance near 910 levels, made a high near 960. But, after that prices were unable to sustain above the same and showed sharp down move in last few trading session. This down move has broken the black color channel support which was intact since start of 2014. This is suggesting that short term top is in place for Kotak Bank. We have applied various other tools which are giving warning signs at current level that up move from ……. is in danger.

Directional movement index (+) in blue color and Directional movement index (-) in red color is working very well. In the past we observed that whenever blue color line moves above red color line  prices showed strong move on upside on the other side whenever blue color line moves below red line prices have showed down move. In simple terms, crossover of blue and red color line is providing signal for buy and sell. At current level, ………

MACD: This indicator is showing negative divergence and also the red line has crossed below signal line. What does it mean?Indicators are suggesting weakness but is it right to take the trade based on Indicator? Absolutely not! It is imperative to look at price charts of shorter term duration to get good entry or exit levels along with Risk Reward ratio.

Time Cycle of 96 days: is working well to find out the top and bottom.

A detailed 120 mins chart is also shown in today’s morning report for Kotak Bank.Looking at short term indicators with crucial price levels is the key for successful trading and timing the markets.

To know what is next from here subscribe “The Financial Waves short term update” –a flagship product that covers Nifty and 3 different stocks on rotational basis, complete charts, indicators, applied Elliott wave and much more. The reports will be delivered daily in your mailbox and can also be accessed online. Visit http://www.wavesstrategy.com/index.php/store.html for pricing options.