Monday, December 9, 2013 - Advantages of Elliott wave study..
Nifty Pre-Market View.
Market has prepared itself with many 1s,2s, i,ii,(i),(ii), (i),(ii)and poised to unfold its (iii),(iv),(iii),(iv),iii,iv & 3s & 4s...
Combining other studies, one is able to choose the favourable direction and follow prices...trend.
A pull back on a break out should be followed by a trending move. Only if that fails to happen, should we start to looking out for weakening signs.
Until then, follow the prices using "retrace of the last rise" which is likely to unfold today from Friday's low of 6231.
Read Elliott wave study to understand the "Market's fascination with 5s and 3s. I see it all the time. But I use them only at the correct junctures using classical technical analysis and when various T/F suggests of the prevailing major trend. Never get fixated with EW labelling. They are meant to be "Use & throw". It took for my eyes years to spot these amazing "Fives and Threes unfolding".
EW Rules:- Keep these three "Hard rules"(Unbreakable) always in mind while assessing/ counting/ labeling the price moves to help you arrive at a correct count which can result in a unbelievable forecast & stupendous trades.
- An impulsive wave always subdivides into five waves (1-2-3-4-5). - Wave 1 usually subdivides into an impulse or seldom into a leading diagonal. - Wave 2 subidivides into a zigzag, flat or combination. - Wave 2 never moves beyond the start of wave 1 (Rule-1). - Wave 3 always moves beyond the end of wave 1 and is never the shortest (Rule-2). - Wave 5 subidivides into an impulse or an ending diagonal. - Wave 4 subidivides into a zigzag, flat, triangle or combination. - Wave 4 never moves into the territory of wave 1 (Rule-3).