Nifty 3 Powerful Indicators – Neo wave, Channels, Time
Dec 13, 2022
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Neo wave is advanced Elliott wave concept. If applied correctly it can provide maturity of trend and clear trade setups with prudent risk reward.
In this research we are showing three powerful techniques that can give high reward low risk trade setup.
Nifty 15 Minutes Chart
Elliott Wave Analysis – As shown in above chart the fall from the highs of 18900 is in the form of wave (b). This wave (b) is comprised of double corrective pattern that involves wave x. The first corrective pattern is a 7 legged Diametric which is followed by wave x and then a possible Extracting Triangle pattern. The last leg which is wave e is retraced back in faster time thereby providing two stage confirmation that possibly wave (b) is complete and wave (c) is starting on upside. However break above 18440 will confirm this scenario which can then take prices to 18650 and higher levels.
However, one should understand that this is only a probability and it is going to be valid as long as 18426 which is low point of wave e is protected. Move below this low level will suggest that the up move was another wave x and market has further downside left before reversing back on upside.
Time analysis – By combining Time cycles one can understand the possible area of reversal. We can see that most of the minor lows are formed on this 43 period Time zone. Wave e low was little delayed but the short term time will remain on buy as long as 18426 is intact.
Channels – This is most powerful technique in Technical Analsysis but very few traders pay attention to this simple method. Prices are near the channel resistance and an hourly close above this channel will further indicate possible positive reversal.
In a nutshell, Nifty is at important juncture. Move above 18540 will be short term positive as long as 18426 remains intact on downside. These 3 powerful indicators Neo wave, Time cycles and Channels can increase the odds in favour of traders thereby providing low risk high reward trade setups.
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