Friday, April 24, 2015

How to capture the moves in Banking stocks applying Elliott wave theory and Fibonacci ratios?

Trading is simple if we use objective tools to trade the market.
“The Financial Waves Short Term Update” covers research on Nifty and 3 stocks with in-depth analysis. We have been using basic technical tools along with Elliott wave theory to ride the short to medium term trend. Recently we were able to capture the trend of SBI and the part of the same is shown below:   
SBI 60 mins chart: (Anticipated in the morning of 7th April 2015)

SBI 60 mins chart: (Happened on 13th April 2015)

(Part of research published in the morning of 7th April 2015)
Waves Analysis:
As shown in 60 mins chart, prices have decisively broken the black downward moving channel and has made higher high higher low formation. This suggests that upside retracement of the prior down move has started. Now, as long as 263 level is intact on downside short term outlook for this stock will remain positive. However given the RBI Monetary policy today, one should trade with strict risk management and todays closing will be important.

In short, with the support of 263 level short term outlook is positive for SBI. On upside prices are expected to move towards 285 level where channel resistance along with 50% retracement is placed of the prior down move.

Happened:  protecting the support of 263 level, prices moved higher and made a high at 294.90 levels on 17th April 2015. Now, what should be the trading strategy?
Subscribe to The Financial Waves Short Term Update and for more information visit Pricing page

Thursday, April 23, 2015

Forecasting the path of Nifty using Advanced Elliott Wave and Time Cycles!!!

The recent down move in Indian Equity Markets may have surprised many of the traders and investors as Nifty lost more than 550 points in last 6 trading sessions.
However this move we were expecting a month back.
In the end of March 2015 Indian Equity market were moving lower and made a low at 8270 level. This may have turned traders to bearish exactly at the wrong time. At the same time we published the following path with the help of Advanced Elliott wave and Time cycles! See yourself the below chart taken from “The Financial Waves Short Term chart”.
Nifty daily chart: (Anticipated in the morning of 27th March 2015)

Nifty daily chart: (happened till 21st April 2015)
(Part of research published in the morning of 27th March 2015)
The Elliott wave structure looks to have changed to some extent where we are seeing a triangular formation rather than Diametric. In advanced concepts of Neo wave this triangle is known as Extracting triangle where the size of up move reduces and that of down move increases. The current down move has now become the biggest leg in the entire pattern which can be wave (d) of this triangle and now we should see an up push from here towards 8800 levels where wave (e) will be 76.4% of wave (c). 8800 is also the level of 61.8% retracement of the entire fall from near 9100. This level is also previous x wave which tends to provide good resistance to prices. However, first thing first, as of now we have not seen a positive close above previous bar high which is crucial sign for reversal in trend.
Capturing the recent short term low!!!
Nifty 60 mins chart: (capturing the short term low)
(Part of research published in the morning of 22nd April 2015)
As per advanced Elliott wave  Neo wave, alternations are very important between waves ii and iv. Also out of 6 touch points not more than 4 points should lie on the channel else the structure becomes non  impulsive. This is the reason why we think the fall from 8445 is in double corrective formation and wave c of second correction will reach towards 8270 where it will achieve equality with wave a. Post that there can be another…….
From the above research we can see that how we were able to capture the crucial turning point over past few months. As per all this techniques Indian Equity Markets has been trading at extremely crucial point. To ride the next wave subscribe to The Financial Waves Short Term Update which covers Nifty and 3 stocks with short term trading opportunity. For more information visit Pricing page

Wednesday, April 22, 2015

How to trade Nifty on intraday basis?

Trading becomes interesting with rise in volatility provided you are placed in right direction of the trend.
It takes intense research and analysis before executing trades. If you have time constraint and do not want to apply advanced objective techniques yourself leave it upto the experts who are looking and measuring the pulse of the market on daily basis.

The below shows past few Nifty trading strategies we have given in our daily research report “The Financial Waves Trading Update”

Anticipated the fall since 16th April 2015:


Happened so far:  


On 16th April before markets opened following was the trading strategy:

For today, short positions can be created on move below 8720 with 8770 as stop and target of 8650

Happened: Nifty moved exactly as expected and touched the intraday low near 8640 levels.

Trading Strategy on 17th April 2015: “For today, short positions can be created on move below 8650 with 8710 as stop and target of 8580. Avoid creating long positions for today."

Happened: Nifty broke below 8650 and rushed towards the target area.

Trading Strategy on 20th April 2015: “For today, short positions can be created on move below 8590 with 8640 as stop and target of 8520. Avoid creating long positions."

Happened: Nifty moved exactly as expected and moved even below the target area.

We do not say that the strategy given before the markets might work every time but the accuracy of around 70% to 80% should also suffice to have a profitable P&L on an average basis. A very big trend might. Do not get carried away that it is only buy on dips market probably it is time to evaluate and change the stand!

Subscribe to the daily Equity and Nifty research report and get insights into most objective techniques you might have come across to assist you in your trading and forming suitable strategies. For subscription options visit the Pricing Page

Tuesday, April 21, 2015

Trading Nifty using indicators – Elliott wave, MACD, Time cycles, Channels! Catching reversals!

Nifty has given away more than 400 points in less than 4 days.
This might be a surprise to the short term traders or investors but using the objective techniques of Elliott wave, MACD, Channels on the short term charts can help you capture key reversal areas.

Many might argue and come out with fundamental justifications after the fall has happened. But is it possible to predict the movement before it even started? The answer is definitely YES with a given degree of probability!

We have published article few days back showing our prediction of 27th March that clearly showed the rally towards 8800 and then sharp fall from there. You can scroll few days back and check this article. Now below we are showing the short term techniques we used to time the market movement! Read below if you want to get more thrilled!!!

Nifty 60 mins chart: Anticipated on 16th April 2015 (published in morning research report)




Happened: closing of 20th April 2015


Wave Analysis:

The following was published on 16th April 2015 

Nifty had sharp reversal at 2:50 pm and lost nearly 100 points in nearly 10 minutes. We have been clearly warning about such moves which should not be a surprise to our subscribers. The major reason being that in the entire up move from 8270 levels there has been sharp reversals on downside and also the wave counts internally was suggesting that the rally is near completion. Also final leg wave c of second correction formed a wedge shaped  Ending diagonal pattern that warrants such sharp reversal.

We showed the path of Nifty on 27th March morning when prices closed near the days low of 8270 levels. It takes lot of belief in the objective techniques to mark the reversal on upside from there which clearly showed an up move till 8800 - 8830 levels which will complete wave (e) and then a move back on downside.Happened: Nifty has followed this path to the point along with time as well and reversed on the 49th day cycle.
Word of caution: If Nifty is indeed starting a major leg on downside we should see some serious selloff from here over next few weeks. In short, move below 8700 will confirm negative outlook on Nifty with resistance of 8830 on upside preferably on closing basis. Volatility can be high from here and existing short positions should now use 8830 as stoploss and follow trailing stop method in case this move develops into a bigger selloff from here!

The following was published on 17th April 2015 

Over short term, Nifty has taken out the important support of 8680  8700 as well on intraday basis. If this is indeed start of important trend then the top at 8800 should remain protected. So existing short positions should now trail stop towards 8800 and ride the trend as long as it lasts.

Short term MACD indicator shown on hourly chart has also move decisively below the signal line along with negative divergence with prices. Such minor negative divergences which are very important might be missed out on RSI as it is a bounded and range bound signal. It is therefore important to use one bounded like RSI and one non bounded indicator like MACD to gauge the internal strength and momentum. In short, trend for Nifty has reversed & one should avoid catching a low in this down move. The trend can be fast and sharp.

Happened: Nifty followed the path exactly as expected. It is only because of the belief in the objective techniques mentioned above that we are able to capture the entire down move so far. Since 27th March 2015 we have been able to capture nearly 500 points on upside on Nifty and now nearly 400 points down fall and counting.

What is next from here? You will have to subscribe for that to the daily equity research report The Financial Waves short term updateVisit Pricing page for subscription options and get insight into Nifty along with periodic update on Bank Nifty and three different stocks provide good short term trading opportunities. Trust me, this can be the best investment you have made so far!

Now post your charts with Technical Study and start the discussion on our Discussion Forum Page and get it answered by our experts. To post your chart now visithttp://www.wavesstrategy.com/Discussion/Discussions.aspx?type=start Call us on +91 9920422202/ +91 22 28831358 for any other details

Thursday, April 16, 2015

Nifty Time Cycles, Extracting Triangle Neo wave pattern helped us to catch yet another REVERSAL!

Indian equity market has currently shown sharp reversal on downside.
Is this a start of major downtrend? If yes then where would Nifty head itself in upcoming sessions? In order to get answers of all your questions subscribe to The Financial Waves short term update which covers Nifty along with three stocks applying Elliott wave theory along with basic technical tools.

We have been able to capture the entire move of Nifty right from the top of 9119 to the lows of 8270, then again to the high of 8840 from where prices have reversed back again. 

See yourself and do not guess the reasons we have given and the path we showed more than two weeks back. It takes strong belief in the techniques one follows to be against the crowd during major turning juncture!

Nifty daily chart: 

Anticipated on 27th March 2015 even before there was not a single positive bar















 Nifty daily chart: (Happened so far)
















Elliott Wave Analysis: The following was published in todays morning research report to our paid subscribers ofThe Financial Waves short term update

In previous update we mentioned that In short, Nifty is in matured stage of up move and sudden reversal should not be a surprise. However, such sudden reversal should break 8700 and close below it.Next 2 to 3 days are going to be very crucial!

Nifty had sharp reversal at 2:50 pm and lost nearly 100 points in nearly 10 minutes. We have been clearly warning about such moves which should not be a surprise to our subscribers. The major reason being that in the entire up move from 8270 levels there has been sharp reversals on downside and also the wave counts internally was suggesting that the rally is near completion. Also final leg wave c of second correction formed a wedge shaped  Ending diagonal pattern that warrants such sharp reversal. Nevertheless, ……

We showed the path of Nifty on 27th March 2015 morning when prices closed near the days low of 8270levels. It takes lot of belief in the objective techniques to mark the reversal on upside from there which clearly showed an up move till 8800 - 8830 levels which will complete wave  and then a move back on downside.Happened: Nifty has followed this path to the point along with time as well and reversed on the 49th day cycle.

Word of caution: ……..(shown in actual report)

As shown on hourly chart, Nifty has broken below the channel support and 20 periods EMA which was providing good support. Prices are now lying on lower end of the Bollinger bands and a close below ………. will result into negative close below it. Also if someone is placed on short side should now follow trailing stop of…………

Subscribe now and get your daily copy of Nifty and 3 stocks analysis before market opens. To subscribe visit http://www.wavesstrategy.com/PriceNew.aspx or write to us on helpdesk@wavesstrategy.com

Now post your charts with Technical Study and start the discussion on our Discussion Forum Page and get it answered by our experts. To post your chart now visithttp://www.wavesstrategy.com/Discussion/Discussions.aspx?type=start Call us on +91 9920422202/ +91 22 28831358 for any other details