Trading Using Ichimoku Cloud with Patterns of Elliott wave

Trading Using Ichimoku Cloud with Patterns of Elliott wave

Ichimoku Cloud is technical analysis concept that if applied along with Elliott wave can provide high conviction trade setups for Intraday, Swing trading.

Also Options Traders must know this forecasting method to trade with an edge over others.

Nifty daily chart with Ichimoku Cloud

Above is daily chart of Nifty along with Ichimoku Cloud that shows that since the rise from the lows of 18838 prices have managed to find strong support on the cloud and bounce back.

We can see that even this time prices came close to the cloud support and is attempting to reverse back higher.

Also everytime prices touch the cloud it suggest possible change in wave count. We can see that all corrective wave b, wave d and now wave f came to the cloud.

Two stage confirmation (Neo wave concept) along with reversal above the red (base line) and crossover of base line above conversion line (blue) is a perfect trade setup for positional options trader.

In a nutshell, Nifty looks to be at important juncture completing wave f and possibly starting wave g higher. Further confirmation will be obtained on break above 21683 Gann levels taking prices beyond 22k. On downside 21520 remains important support.

TRISHUL – Learn the science of Options Mantra (online video) along with Elliott wave, Neo wave and Ichimoku cloud in Sutra of Wave scheduled on 20^th – 21^st January 2024. Fill below form for more details.