Nifty, having broken out of the consolidating channel @ 7425, making huge gains in uncharted zone.

Nifty completed its pause & starts its (iii)rd wave from "7083"

Alt. view, if any, would be updated in Pre-Market view..

The Credit belongs to you...and you alone.

To the Silent Gambler...who is daring greatly...
It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better.
The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again,
because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause;
who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly,
so that his place shall never be with those cold and timid souls who neither know victory nor defeat.
-Theodore Roosevelt.
From 6639 to 7172 has unfolded into a 5 sub-waves gaining 533 pts, followed by a "pause/ consolidation".
If prices hold above 7020-47 zone, the gap area and pivots or 21 hr sma " 7068-782, next set of 5 sub-waves would start to unfold whose sub-waves will be difficult to spot.
Hence, the low of today as well as the two-day-low of 7067 would be considered critical, taking into account the nature & characteristics of (iii)rd of 3rd wave.

Nifty shines on in its 3rd wave glory...

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).

Nifty makes huge gains after a "Major B.Out" in its 3rd wave that comes after 4 years of consolidation...

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.

Nifty, having done the normal retrace @ 5477-5531 at open, commenced the most impulsive of this downtrend.

Nifty, with a decisive fall below last low of 5487, confirms the 3rd of 3rd, with a "Fast fall Set up" to support it...

Nifty Pre-Market View.

Nifty made a weekly reversal with an "Evening star pattern" and closed below its WEma.
It is now poised to reverse the monthly trend with an attempt to close below MEma-5858.
Staying below "5894-50dsma", the selling pressure is likely to increase to bring Nifty below "5852-200dsma" towards "5760-76" zone initially.
ST EW labels could change in a strongly trending market; they are to be read with TA & TT.
A iii rd wave is in progress within which the sub-waves suggest of deeper correction ahead with the 3rd of iii rd to unfold soon.
BN's last month's Evening star produced a "1200 points fall". That is "Crane's strategy".
Nifty has just made an Evening star pattern. And that is bearish.
Wishing you lots of confidence & peace in your trading room.

Nifty, in its iiird wave, gives a weekly reversal, a monthly "pause".

Nifty gaps down again in its "(iii)"rd of the iiird wave..

When you take a step back from the "Intraday movements", there is an orderly movement in the market on most occasions once a trend is in place; the chart has only once a "whipsawing phase".

Nifty's weekly trend asserted when it mattered the most.

To the disciplined follower of TA+EW,
a classic wave completion in its most imperfect form(iind wave & start of iiird) and
a trend assertion when it was time(Just turned down week trend asserting itself in the next week end).
Four days of upmove was seen because of oversold Day & Hour TA but the larger trend which had turned down on 24th May, asserted itself when the next week's close approached...today.
That is also termed as Rhythmic following of the markets using combination of studies.
When in doubt, stay out;
But When sure, .........act without fear.

Nifty breaks out of the ascending triangle.

Ascending Triangle (as a Continuation pattern)

Definition of 'Ascending Triangle'

A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs. Traders enter into long positions when the price of the asset breaks above the top resistance. The chart below is an example of an ascending triangle:

Read more: http://www.investopedia.com/terms/a/ascendingtriangle.asp#ixzz1zAzPWA2a

Nifty, uptrending, closes above the critical 50sma @ 5086, paving the way for the 3rd wave..

Nifty reverses after reaching Month's R.2 @ 5630 with day -ve div.

This MahaShivratri, we listened to "Jaggi Vasudev's" discourse and he said..
Become shameless to know your true potential. He meant "shed all your inhibitions". You won't find your answers in the I-phone but in the "I" packed with God's software.
Shameless here would mean that you are being yourself and not pretending, you are not ashamed to act the way you want to. Shameless would also mean that you do not react to people's opinions.
When I read some of my readers' mail, I feel sad for all their struggles in this financial jungle. But it is their struggle and they'll come out of this with more objective application. It is their Karma and my Karma is to teach...only that. You'll find it Kid's stuff.
I just shed a bit of my inhibitions to demonstrate how various studies such as EW, OI analysis, Pivot table, ORB, divergences could be applied in real time to make money.
Everyone knows how the accelerator works but only the experienced knows how much to press..when to leave it besides manuevouring with steering wheel.
We did anticipate the end of the 3rd wave and whenever it showed continued strength, we accordingly shifted the labels and we even pinned the "Breakout @ 5415" when Nifty stayed sideways for few days.
This correction has equalled the last fall from 5217 to 5077(140 points).
We do not need to know how far the rise or fall will go but we definitely need to know the direction as well as whether we should be in a trade. Part booking as well as trailing SL would take care of the steady money flow.
Whenever subjective opinions take over your intellect, check the TT and take your trades based on its strength/ weakness.
It pays to remember always that markets are irrational and having accepted that fact, we could study the prices..its patterns to find a method to make some confident trades.
Day chart shows "3/C" being completed and "4/B" wave unfolding..

Nifty has all the makings of a (iii)rd of iii wave - the deep cut.

Read through some of our earlier observations here. And especially this one. Going over our earlier approach to markets while downtrending helps.

Nifty impulses down below 5355 after having shown weakness below 5455 for a few days...

Use the oscillators at the right moments.........

Nifty breaks below major month support & into its dreaded Third wave.

If you can not take the baby steps into this financial jungle with simple lessons, then you are "perennially" going to be looking for saviours to state "Nostradamus predictions" of the markets and there are dime a dozen of them around who would like to boast of " How they knew all along whats goin' to happen". Few months back there was a worldwide hysteria about "impending crash" but nothing happened.Markets went up 20+% surprising those gullible & pseudo experts.
A reader has been sending me mail regarding "Scientifically arrived Astro predictions" and he has been proved quite right. It is his own study and he has faith in it. However, our system/ methods taught here can be easily followed by anyone which has captured all those big moves.. Should we then boast of 1000 points gain since 11th Nov., just in less than a month..?????
Is that what you are going to "Hang on to".. Then, this blog will never satisfy your thirsts. How long are you going to hang on to these "Cheap advertisers" who appear suddenly leaving their calling cards so that you can become their patron till you become "DRY".
Don't you want to be on your own and achieve results quietly without announcing to the whole world..
Surprise your loved ones with some gifts..do the charitable act that you always wanted to do.. Let that motivate you to be more disciplined..Yes.. Only the discipline will bring you rewards.

Nifty Intraday Update-III

Nifty PreMarket View

"Rug being pulled under the Bull's feet day" is here..
(May get repeated once more later).
@ IITian: the New Kid on the blog - You nailed the big fall yesterday afternoon. Good start to your joining the enthusiasts.
@ Satheesh: +ve divergences that appear during 3rd waves are traps. The other way to look at it is - a critical channel breaking time or higher trend like Day, week yet to reach the OS levels.
@ golfdude: Replace the day & week data of "Nifty T.A" file with S&P or Dow prices (Can be downloaded from Yahoo Finance)
@ Rajagopal: "OS" may remain "OS" in a strongly trending markets till daily bottoms(lead indication from stochastics) and then a +ve div (Rsi or macd).
@ Warlockar: Settlement will be closer to the lows - could be 4700.
@ Narasing: I have been posting regularly Bank Nifty analysis in my other blog - "Stockwealth"
@ asrani: Never count your winnings....just be in the Now - so much is happening.