Elliott Wave Theory

[timepass]

I think it's not a proper wolfe wave because the lines 1-3-5 and 2-4 are diverging, not converging.

Though It looks like Good Short setup with Great Reward to Risk Ratio
I Personally avoid Short now as we have Big RBI Event

 

[WaveSurfer]

Wolfe on Nifty

I think this is close to a proper wolfewave where wave 2 is a low.
The one on bank nifty does not qualify as a wolfe wave as per my understanding.

 

[WaveSurfer]

Here is a EW probability on Nifty , an ending diagonal C in the making .To the classic analyst , it would like a rising wedge.
Keeping the market up till RBI policy announcement and then back to business as usual.

USDINR 1h

The FII inflows may soon turn into outflows.

 

[naughtynifty50]

I think it's not a proper wolfe wave because the lines 1-3-5 and 2-4 are diverging, not converging.

yes, not a wolfe, its an expanding triangle

 

[naughtynifty50]

Wolfe on Nifty

I think this is close to a proper wolfewave where wave 2 is a low.
The one on bank nifty does not qualify as a wolfe wave as per my understanding.

No, not a wolfe to my understanding.
Points 1,3,5 are not in a line
Moreover 1-3-5 line should not pass through any candle/bar in between point 1 and point 5

 

[SaravananKS]

I think it's not a proper wolfe wave because the lines 1-3-5 and 2-4 are diverging, not converging.

Thanks for Pointing the mistake it may be Mega Phone pattern. I did not done much work these pattern. But as per EW the price should retrace the whole wave 5. unless wave 5 is extended. if wave 5 is extended then it should greater than next lengthy wave (ie wave 3 ). So if BNF Crosses 16700 then we can confidently say wave 5 is extended. until wave 3 would be largest wave So we have High probability to reach 15170.

But Is it right time to initiate Short?

the Answer may differ to trader to trader. for me I don't take short unless a clear reversal seen.

Elliot wave will not tell where to enter short?, where to put the initial Stop loss?, what to do when target price reached? and how to trial the stop loss etc.

Last 2 Trades of mine hit the stop loss. since it would be always tough to trade when pattern expanding. as per my knowledge their no clue as per EW theory to know which type of pattern would occur in future.

So as a trader I would wait un till RBI announces Policy.

Those who want take risk can sell 16700 call (above 16700 we would get confirm that chances for reaching immediate 15170 is almost nil) which is trading 212. for the Stop loss of 400 Target 0

 

[naughtynifty50]

Thanks for Pointing the mistake it may be Mega Phone pattern. I did not done much work these pattern. But as per EW the price should retrace the whole wave 5. unless wave 5 is extended. if wave 5 is extended then it should greater than next lengthy wave (ie wave 3 ). So if BNF Crosses 16700 then we can confidently say wave 5 is extended. until wave 3 would be largest wave So we have High probability to reach 15170.

But Is it right time to initiate Short?

the Answer may differ to trader to trader. for me I don't take short unless a clear reversal seen.

Elliot wave will not tell where to enter short?, where to put the initial Stop loss?, what to do when target price reached? and how to trial the stop loss etc.

Last 2 Trades of mine hit the stop loss. since it would be always tough to trade when pattern expanding. as per my knowledge their no clue as per EW theory to know which type of pattern would occur in future.

So as a trader I would wait un till RBI announces Policy.

Those who want take risk can sell 16700 call (above 16700 we would get confirm that chances for reaching immediate 15170 is almost nil) which is trading 212. for the Stop loss of 400 Target 0

IMO, we may get an extended W5.

 

[prabhsingh]

IMO, we may get an extended W5.

In that case it will break the rule that Wave 3 cant be shortest.

 

[naughtynifty50]

In that case it will break the rule that Wave 3 cant be shortest.

I do not understand much about the EW rules.
Can you please post a chart to show waves as per your this reading.
If can not post chart, then please post the time frame of your study (you are referring to) and waves points. I will draw myself.

BTW, I was commenting on SKS post not directly but inversely.

 

[Stock trendy]

Monthly chart..

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