Wa going throught the fibo analysis by robert fischer and found a piece of info on Elliot waves and thought of sharing with my beginner friends..
If u have been using the Eliot theory before we can see the 5 wave downtrend formation from Jan 2008 highs.Now the point of discussion is how we trade the corrective waves in the downtrend.For this we need to confirm:
1. If we are in a confirmed down trend(which we are in)
2.If after the formation of the 5th wave in the down trend ther is a side ways correction (this can be flat or traingular)
3.The 3rd wave in the correction waves should be the longest
now as we see the 4 waves in the correction period have formed...Now this is a common rule by elliot that during the correction period we never buy at the end of wave 2..This is largely may be because of the false signals that it gives especially when the movement is sideways.
We need to wait for the 5th wave to form now.we dont know if the 5th wave will end this current trend(down) or will break out to start a new trend(up).
Guess many traders watch these techniques and probably one of the reason behind the low buying interest int the market during the past 2 months.
So i guess as we go with these rules for a correction period a break out above 3150 will see a new trend(up) and a break down without the complete formation on the 5th wave shall be an indiaction of the continuation of the current trend.
This was just an attempt to put up what ive understood or learnt.clarifications and additional teachings would be great.[/QUOTE]
Shishir bro instead of writing that go through books again if u had written where is he wrong would b of much help to him and all of us
Knowledge always make us all polite Hope u know that better then me as u hav lots of knowledge then me
God bless u
