Saturday, January 07, 2012

Nifty wave 5 of {c} analysis, requested by Abhinav!



This is a 1 min chart of the advance towards the closing of the markets. We can observe a leading diagonal and then a sharp rise ion wave [iii] of 5. There seems to be a triangle formation taking place in wave [iv], though I have marked it as complete, it my extend sideways and take more time to complete. One last dash towards the 4815 - 4865 range is required to complete this pattern. The minimum requirement is to cross the high of wave {a}. Once this is done we may expect this zigzag pattern to be complete and then look for the original down trend to resume. But getting so deep into such lower time frames sometimes takes our focus off the larger picture!


 

13 comments:

  1. thanx a lot anurudda ji.... that's y i told you yesterday i have to learn a lot from you now as per your counting wave 3 retraced 300% of wave 1 by reverse fibonnaci....

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  2. @abhinav you are welcome! u should read a good book on EWP a basic one, like the one written by Robert Prechter with A J Frost. Its a goldmine and considered Bible by EWP practitioners.

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  3. yes sure.... i have it... but its language is too difficult to understand any ways i will try it again...

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  4. Sir,
    quick question-
    During corrections we get corrections as a-b-c-X-a-b-c-
    a ) Now after the last c wave do we start wave 1 ?
    b) is it possible we form another set of X-a-b-c ? if yes how do we identify that the next upmove is an X wave or wave 1 ?
    c) How far would the X or wave 1 retrace upto ?
    This is something I did not find in the book.
    Thanks
    Gaurav

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  5. @Gaurav Surana
    Ans (a) Yes.
    Ans (b) Yes its possible and the correct way of labeling this type of corrections i.e. double and triple zigzags is W-X-Y and W-X-Y-X-Z. (Refer Prechter's book for more clarity on this topic.)
    And once the DZZ and TZZ corrections are done we get the wave 1 of new up move or down move. And there is no way of telling in advance whether the new up move is a wave 1 or wave a of X. Some patterns are confirmed once they are complete, so don't sweat it.
    Ans (c) The same fibo retracement rules for wave 2 and wave 4 apply to DZZ and TZZ corrections.
    And a good way to trade using EWP is to try and position yourself in the third wave either of a correction or an impulse, If its an impulse it should cross the equality mark i.e. wave c==a easily, if its gets resisted and crosses below the top of wave a then it is more likely to be an impulse.
    It's difficult to discuss this topic in one reply I would try and include a short "pattern explanation" in my posts to help everybody understand this beautiful technique. :)

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  6. is this wave count still valid ?

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  7. We have crossed below the peak of wave [i] so definitely this count is bust, now just let the market develop another patten which can be traded!!

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  8. good morning Aniruddha ji...
    I think we have started wave E of ending diagonal in five min chart its look wave 4 is progressing and sill wave 5 pending. thus if it happens we will again go up in wave 2 of larger degree and where we should go short with sl of 4825 i.e. wave 1 top... what u suggests....

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  9. @abhinav can you kindly post a link to your chart, actually I am very bad at remembering numbers (aka levels) I can make better sense of a chart, please post a link. :)

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  10. dear aniruddha ji i can mail u chart because i have not any blog like u whr should i mail...

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  11. @abhinav you have correctly identified a 5 wave decline, but I feel it should be wave [ci] of b as per my chart (http://tradeelliottwave.blogspot.com/2012/01/nifty-moved-contrary-to-our-count-what.html), and should rise again to complete wave c. Support should come around 4685 - 4670 levels.

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