3-Tricks : Where to start Elliott Wave counting on the chart?

Publish Date: 26/08/2021

how to wave count in elliott waves?

We get a lot of questions about Elliott Wave, but a set of questions often received from the followers:

  • Where to start wave counting on the chart?
  • How do I begin/start wave counting on the chart?
  • How do you do Wave Counting?

As a part of establishing Elliott Wave Counting on a chart, we use three working tricks. These are my steps/processes or tricks that can help you to start counting waves.Continue reading

Part 1: Which Strike Prices Are The Most Money-Making?

moneymunch options strike priceFigure 1.1

There is tremendous importance in options trading when it comes to strike prices. Traders can reduce the pain of option decay by choosing the right strike price.

In terms of money, there are three kinds of strike prices.
1) ATM – At the Money
2) OTM – Out of the Money
3) ITM – In the MoneyContinue reading

Part 1: How to Count Waves Using Chart Patterns?

We can count waves using traditional patterns like Head and shoulders , Double Top and Bottom,
Triangle, cup & handle, etc. This article is about how you can count waves by identifying chart patterns.

I have covered Three chart patterns in this article,
1) Triangles
2) Head and shoulders
3) Double Top and Bottom

1) Head and shoulders :Free stockmarket elliottwave chart one

In addition, the two lows formed when the price failed to rise and fell back down were basically at the same level. The horizontal line is often referred to as the “neckline” When the price fails to fall back for the third time the neckline will break. So “head and shoulders” was officially established.

Changes in volume with head and shoulders:
During the formation of “head and shoulders”, the left shoulder has the largest volume , the Head has a slightly smaller volume , and the right shoulder has the smallest volume . The phenomenon of diminishing trading volume shows that when the stock price rises, the chasing force is getting weaker and weaker, and the price has the meaning of rising to the end.

Operation plan after the Head and shoulders appear:
When the head and shoulders formed, you can decisively follow up the short order. The formation of the head and shoulders indicates the beginning of a new round of decline in the market, and the minimum drop is the distance from the head to the neckline. The profit is very substantial. Therefore, studying the formation of the Head and Shoulders is also a necessary analysis process for band enthusiasts.

Wave Count:
Free nse stock market head&shoulders wave analysis

The left shoulder: wave 3/A.
The first touch on the neckline: wave 4/B
Head: wave 5/C
The second touch on the neckline: wave A/1
The right shoulder: wave B/2
The ending point of the right shoulder: wave C/3

2) TrianglesFree nse elliottwave triangle calls

These are the most commonly used triangle patterns. In this motion, we are going to understand the triangle in terms of the Elliot wave. We’ll be talking about the classical triangle pattern in an upcoming educational series.

Wave Count:free nse elliottwave educational tips

A triangle forms in corrective waves. There are Four corrective waves in Elliott wave theory. The corrective waves are 2,4, B, and X.
There are four waves in a triangle which are A, B, C, D, E.
The starting point of wave A of the triangle is the ending point of impulsive wave 1/3/A/W. After the completion of wave E of wave 1/3/A/W, the Impulsive wave will initiate.

3) Double Top/Bottom:Free elliottwave educational analysis

In the chart, you can sometimes see the stock price fluctuations. The stock price fell back after reaching the highest price. After some sorting, it rose again to near the previous stock price level and then fell back. Two “normally highs” The high point is formed on the circuit diagram and will not be seen again in the short term.

Wave Count:free nse elliottwave doubletop & bottom count

In a Bull market, The first Top of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave.
I started the wave count from the first top and labeled it as A, B, and C waves.

In a Bear Market, The first bottom of the pattern represents the completion of the impulsive wave. The ending point of the Impulsive wave is the starting point of the corrective wave.
I started the wave count from the first bottom and labeled it as A, B, and C waves.
After wave C is complete, we can ride the impulsive waves.

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Information on Elliott waves trading analysis

Yesterday we had provided this:

Buy reliance 2018
Stop-loss 2009
Target 2057

What is Elliott wave theory?

Elliott wave theory is a method of technical analysis that looks for red current long-term price patterns related to persistent changes in investor sentiment and psychology, the theory identified as impulsive waves that set up a pattern and corrective waves that oppose the larger trend.

The Elliott wave theory was developed by Ralph.nelson, Elliott to describe price movements in financial market, in which he observed and identified recurring.fractal wave patterns wave can be identified in stock price movements and in consumer behavior investors trying to profit from a market trend could be described as” riding a wave” a larger, strong movement by homeowners to replace their existing mortgages with new ones that have better term is called a refinancing wave.

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How do Elliott waves work in our trade?

Some technical analysts try to profit from wave patterns in the stock market using the Elliott wave theory, this hypothesis says that sock price movements can be predicted because they move in repeating up and down patterns called waves they are created by investor psychology.

The theory identifies several types of waves including motive waves, the subject can not all traders interpret the theory the same way to agree that it is a successful strategy. The whole idea of wave analysis itself does not educate to a regular blueprint information, where you simply  follow the traction, unlike most other price information, wave analysis offer signal into text dynamic and helps you understand price movements in a much deeper way.

The Elliott wave principle consists of impulse and corrective wave at its core

Impulsive wave consists of five sub-wave that make next movement in the same direction as the trend of the next largest degree this pattern is the most common motive wave and the easiest to spot in  a market, like all motive wave, it consists of five sub wave three of them are also motive waves, and two corrective waves .this is labeled as a5-3-5-3-5 structure, which was shown above 

Corrective wave-consist of three, or combination of three, sub wave that make at motion opposite to the trend of the next largest degree like all motive waves, its goal is to move the mark in the direction of the trend

Also, like all motive consists of five sub waves the difference is that the diagonal looks like either an expanding or contracting wedge .also the sub-wave  of the diagonal may not have a count of five, depending on what types of diagonal is being observed.as with the motive waves, each sub wave, and sub wave three of the diagonal may not be the shortest wave.

To be CONTINUE this research in next  STOCK ANALYSIS”

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