Bank Nifty using Ichimoku cloud + Neo+ Fibonacci

 Bank Nifty using Ichimoku cloud + Neo+ Fibonacci

Bank Nifty has been moving precisely as per Neo wave count. Checkout this example of how we applied Ichimoku cloud and Fibonacci along with Price Action to identify the wave counts and predict the price movement.

The following research is picked up from the daily Equity Research Report – The Financial Waves short term update

Bank Nifty Daily Chart (As on 13^th March 2023)

Bank Nifty Hourly Chart (As on 13^th March 2023)

Wave analysis as on 13^th March 2023

In the Friday’s session, Bank Nifty opened with a huge gap down of nearly 450 points due to weak global cues. Index witnessed a selling pressure throughout the day and as a result prices formed a big red candle and closed with a huge loss of -1.87%. Also, we have shown Ichimoku cloud. Wherein, prices have bounced back on the downside by taking resistance of the cloud. This suggests that as long as price holds respects the cloud medium term tone is likely to remain negative. As per wave perspective, wave 4 is moving on the downside.

On the hourly chart, we can see that prices are moving down by moving in lower high low fashion. This keeps bias looks negative as long as we do not see a close above previous candle’s high. As per wave perspective, wave (a) has completed on the upside and next leg is unfolding on the downside which has retraced more than 61.8% of prior wave a and we can expect it to go towards 78.6%. However, fall was sharp so possibility of a sudden reversal cannot be ruled out. One can use this opportunity to ride the trend.

In short, Bank Nifty looks sideways to negative. Use pullbacks as a shorting opportunity for a move towards 40150 as long as 40850 holds on the upside.

Bank nifty Hourly chart (Happened as on 13^th March 2023)

Happened

Bank Nifty opened with a minor gap down and later showed a good pullback. As we mentioned that pullbacks can be used to ride the trend and prices moved precisely and not only achieved our target of 40150 but also moved much lower and made low of 39575. This entire fall of almost 2.5% we have been able to capture successfully with the help of simple indicator, Neo wave and Fibonacci.

3 Months of Mentorship on Timing the market – starts on 18^th March 2023. A mentor can reduce the learning curve that can take years to a few months and also show the path towards achieving trading profitably using simple step by step process. Trading can be a serious business but only if one knows how to maintain consistency and have a clear plan and trade setup. Trading is not only about methods but a lot about correct mindset, right psychology, risk and money management. 

Bank Nifty Elliott Wave Impulse Pattern Is Starting?

 Bank Nifty Elliott Wave Impulse Pattern Is Starting?

Elliott wave and Neo wave on Bank Nifty provides clear understanding that the down move might be completing soon and up move is possible once we see breakout above 42000 levels.

Below chart of Bank Nifty shows short term to medium term outlook.

Bank Nifty daily chart:

 

Bank Nifty Hourly chart:

Elliott wave analysis – As shown in daily chart, we can see that Bank Nifty has been moving up in impulse pattern. It completed wave 4 at channel support and now possibly wave 5 is starting higher. Further confirmation of the same will be obtained on break above the upper trendline near 41900 levels. We are seeing lack of momentum as prices are in Terminal Impulse which is on lack of momentum.

Bank Nifty hourly chart provides better and earlier opportunity for good risk-reward trades. Prices have broken above the channel and now complete retracement above 41900 will further confirm start of bigger up move. Immediate support is near 41100 levels.

In a nutshell, Neo wave is price focussed technique that helps to understand key levels and maturity of the trend. For Bank Nifty we are at make it or break it scenario. Move above 41900 will be bullish from medium-term perspective and we can expect a good trend from there onwards.

Get access to Nifty, Bank Nifty research reports “The Financial Waves short term update” along with stocks and Elliott wave perspective. Subscribe annually and get 30% off. Here is the link to the Premium Telegram community for research and advisory calls.

3 Months of Mentorship on Timing the market – starts on 18^th March 2023. A mentor can reduce the learning curve that can take years to a few months and also show the path towards achieving trading profitably using simple step-by-step process. Trading can be a serious business but only if one knows how to maintain consistency and have a clear plan and trade setup. Trading is not only about methods but a lot about correct mindset, right psychology, risk and money management. 

Options Trading Using Bollinger Bands®, Open Interest and Time Cycles

 Options Trading Using Bollinger Bands®, Open Interest and Time Cycles

Options Trading requires timing the entry and exit precisely. By combining Bollinger Bands along with Time cycles and Open Interest profile we can gauge the momentum and Time.

Time cycle is amazing way to identify possible low formation and area of reversal. It can be directly applied on Options chart.

Nifty 17500 call Option 15 mins chart:

Nifty futures hourly chart Open Interest profile

Options are amazing instrument to trade but only if one can understand the momentum and Time along with it. For Option buyers, trend and Time are running against them. It is therefore important that Option buyers are able to Time the market even on Intraday basis.

Nifty 17500 Call options chart shows Time cycle of 87 period applied on 15 minutes chart. This suggest that every 87 period there is tendency to form a low and bounce back. The nature of the up move will depend on the momentum which we can gauge using Bollinger Bands.

As shown in above chart, the latest cycle resulted into prices moving from 300 to above 430 levels on 6^th March 2023. During the bigger downtrend the upper end of the Bollinger Bands acted as strong resistance but on 3^rd March prices broke above the upper bands and resulted into the trending move giving more than 130 points.

Next cycle is now due on 9^th March 1pm. So, option buyers can start looking for buying opportunity in

Open Interest profile – Nifty open interest profile helps to understand at what level big players are building their positions. Open interest is always looked from sellers perspective as they are carrying the risk. As per above chart of OI profile we can see that 17600 is immediate support due to high put sellers active there and 17700 as immediate hurdle, move above 17720 – 17730 can result into short covering rally further on upside.

In a nutshell, by combining Time cycles on Options chart along with Bollinger Bands and Price action areas using Open Interest a complete trading system can be formed especially for Option buyers.

3 Months of Mentorship on Timing the Market – Be a part of upcoming Mentorship starting on 18^th March 2023 with complete handholding, exclusive sessions on Saturdays for Mentees, Live Trading, Algo creation and get access to Live events of Options Trading Using Technical Analysis (OTTA) scheduled on 15^th – 16^th April and Master of Elliott Waves (MOW) on 6^th – 7^th May. 

Nifty Elliott wave with Volume Profile

 Nifty Elliott wave with Volume Profile

Elliott wave is GPS of market and helps in understanding maturity of trend. This combined with Volumes and Open Interest profile give insights into big player’s activity.

Below chart of Nifty shows Neo wave counts which is advanced concept of Elliott wave.

Nifty hourly chart:

Nifty Volume profile hourly chart:

Nifty Neo wave chart shows the entire fall from the top of 18880 in form of double corrective pattern involving x waves which connects two standard corrections together.

The first pattern was 7 legged Diametric followed by x wave and then a Flat corrective pattern. Post completion of wave c of Flat we are seeing sharp retracement on upside. This up move can either be wave x or start of bigger trend wave (c) higher. Confirmation of the same will be obtained on two stage confirmation technique as per Neo wave, which is on break of the upper trendline near 17950 levels.

Volume profile – For traders, it is crucial to see the levels where big players have been active as these levels will act as important support or resistance. As can be seen from second chart, there has been major activity near 17880 (futures) levels where the volume profile is the highest. This level is known as Volume point of control (VPOC). This indicates that prices have immediate hurdle of 17880 where major change of hands have taken place.

In a nutshell, combination of Volume profile and Neo wave is one of the best tools traders can use to derive high accuracy with good risk reward trade setups by understanding the maturity of trend, identifying key levels of reversal and taking positions in Futures & Options accordingly. As per above data as of now prices can be in buy on dips setup with volume profile support at 17670 (futures) and hurdle at 17880 levels.

3 Months of Mentorship on Trading starts 18^th March 2023 – Learn this science of Trading with high accuracy, prudent risk reward setup, complete handholding, access to private telegram group and lifelong association. We are trying to create entire eco-system for every trader who wants to create parallel source of income or take trading as full time profession.

 

Canara Bank: How to derive targets using Elliott wave and price action

 Canara Bank: How to derive targets using Elliott wave and price action

Elliott wave help us to navigate the trend of the market. Canara Bank has shown a good recovery since past 2 trading sessions and achieved our target of 291 in a single day and made high of 292.90. You can also do that especially if you know how to apply Elliott wave along with technical indicator for powerful setups.

We published the following article on Canara Bank pre-market on 1st March 2023 in "The Financial Waves Short Term Update" which our subscribers receive pre-market every day.

Canara Bank Hourly chart as on 1st March 2023 (Anticipated):

Canara Bank Hourly chart as on 2^nd March 2023 (Happened):

Wave Analysis as we published on 1st March 2023:

On the hourly chart, we have shown Parabolic sar which helps to identify entry and exit points and also to understand overall trend. As its shown sar dots have formed below the prices which is deemed to be bullish signal. Also, KST is moving close to zero line after showing positive crossover which suggests further good momentum can be seen. As per wave perspective, wave e has completed its movement on the downside and next leg is unfolding on the upside. We have also used Fibonacci tool, wherein wave f has retraced 38.2% of prior wave e and we can expect it to retrace 50% followed by 61.8% of prior wave.

In short, CANBK looks sideways to bullish. One can buy above 281 for move towards 291 as long as 271 holds on the downside.

Happened:

We can see that wave count have helped us to find out the trend reversal for Canara Bank well in advance. After completing wave e near 269 levels we had mentioned possibility of up move in form of wave f and the stock moved as we expected. In such choppy market, the stock is holding well on the upside. This early move can be easily identified using wave theory and simple price action.

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.