NIFTY 50 future TRENDS

[manoharpillai]

manohar ji

thanks for inf., just one question is there any specific reason why you start wave 1 from 19,

anil negi

Three Rules

Believe it or not, there are only three rules when it comes to interpreting Elliott Wave. There are many guidelines, but only three HARD rules. These are unbreakable. Guidelines, on the other hand, are bendable and subject to interpretation. Furthermore, these rules only apply to a 5-wave impulse sequence. Correction, which are much more complicated, are given more leeway when it comes to interpretation.

Rule 1: Wave 2 cannot retrace more than 100% of Wave 1.

Rule 2: Wave 3 can never be the shortest of the three impulse waves.

Rule 3: Wave 4 can never overlap Wave 1.
Wave 2 cannot move below the low of Wave 1. A break below this low would call for a re-count. Even though Wave 3 is typically the longest of the three impulse waves, there is a specific rule that it cannot be the shortest. 1 or 5 can be longer than Wave 3, but both cannot be longer than Wave 3. It is probably best to use percentages or log scales when measuring Wave length. Elliott Wave indicates that Wave 3 must exceed the high of Wave 1. Failure to exceed this high would call for a re-count. Impulse moves are all about making progress. Failure to exceed the high of Wave 2 would not be making progress. The third, and final rule, is that Wave 4 cannot overlap Wave 1, which means the low of Wave 4 cannot exceed the high of Wave 1. Such a violation would call for a re-count.

I interpreted some of the above said rules and with the present formation.

 

[anilnegi]

thanks sir

thants mean we have to watchout for wave 3 until to take any position whatsoever,

 

[MurAtt]

So this is wave 2 of a downward move taking 5651 as start of wave 1
or
wave 3 (or 5) of an upward move taking 45xx as start of wave 1 ....

right ?

 

[manoharpillai]

Mano

can it not do a hunfred peecent or for that matter one hunfred sixty one ercent retraxement ?

and pls parson spelling errors coz am typing on itsy bitsy cell kbd ;D

Beyond 61.8% is 100% and 5630 (Double top) you know Double top break out and the level as you stated is 161.8% which is 5914

 

[MurAtt]

So this is wave 2 of a downward move taking 5651 as start of wave 1
or
wave 3 (or 5) of an upward move taking 45xx as start of wave 1 ....

right ?

 

[manoharpillai]

thanks sir

thants mean we have to watchout for wave 3 until to take any position whatsoever,

Wave 3 started from 4676 0n 02-01-12 and ended at 5630 (long one) now wave 4in progress (corrective) once this ends and the wave 5 will cross 5630

 

[NANDAMAD]

Wave 3 started from 4676 0n 02-01-12 and ended at 5630 (long one) now wave 4in progress (corrective) once this ends and the wave 5 will cross 5630

EW chart very simple and ur explanation very very simple and informative. Thanks bro

 

[anilnegi]

EW chart very simple and ur explanation very very simple and informative. Thanks bro

Wave 3 started from 4676 0n 02-01-12 and ended at 5630 (long one) now wave 4in progress (corrective) once this ends and the wave 5 will cross 5630

Yes

the information is very informative but still confused, when to take actual position or we can start @ early wave by taking small stoploss

anil negi

 

[4xpipcounter]

Excellent stuff, Mano!
I'm curious. Has it been recently that you have been studying EW? The only reason for the question is that you have been posting concerning it just of late.

I'd like to add something to your description.
For the reasons you are showing is why price action with regards to swing lows and swing highs are so effective.
Let's just say this market is in a downtrend. Then, all of a sudden, you wake up one day and find you missed the first leg of the reversal. It's no big deal!!! Wave 2 corrects, then just be prepared to enter at the break of the swing high, which would be approximately the mid point of wave 3 and the peak of wave 1. Afterward ride out wave 3. Once the correction begins again (wave 4), it would be safe to set your stop at the breakeven, because wave 4 (As you so astutely mentioned.) cannot drop under the peak of wave 1. When the peak of wave 3 is broken, then you can add to the position.

Three Rules

Believe it or not, there are only three rules when it comes to interpreting Elliott Wave. There are many guidelines, but only three HARD rules. These are unbreakable. Guidelines, on the other hand, are bendable and subject to interpretation. Furthermore, these rules only apply to a 5-wave impulse sequence. Correction, which are much more complicated, are given more leeway when it comes to interpretation.

Rule 1: Wave 2 cannot retrace more than 100% of Wave 1.

Rule 2: Wave 3 can never be the shortest of the three impulse waves.

Rule 3: Wave 4 can never overlap Wave 1.
Wave 2 cannot move below the low of Wave 1. A break below this low would call for a re-count. Even though Wave 3 is typically the longest of the three impulse waves, there is a specific rule that it cannot be the shortest. 1 or 5 can be longer than Wave 3, but both cannot be longer than Wave 3. It is probably best to use percentages or log scales when measuring Wave length. Elliott Wave indicates that Wave 3 must exceed the high of Wave 1. Failure to exceed this high would call for a re-count. Impulse moves are all about making progress. Failure to exceed the high of Wave 2 would not be making progress. The third, and final rule, is that Wave 4 cannot overlap Wave 1, which means the low of Wave 4 cannot exceed the high of Wave 1. Such a violation would call for a re-count.

I interpreted some of the above said rules and with the present formation.

 

[anayash]

SBIN Daily Chart

I have highlighted three candles on the chart with their lows mentioned!

Can this be considered as a triple bottom provided the 7th March 2012 low holds?

Moreover, is the 1-2-3 pattern still valid after the low of the 3 was broken by the latest candle but the low of 1 is still intact?

In that case, watch out for SBIN to take out 2500 decisively in the coming sessions!