Trading using Elliott – Neo Wave with Lunar Cycle

Trading using Elliott – Neo Wave with Lunar Cycle

Trading using Elliott wave along with Lunar cycle for understanding the path ahead of Nifty.

Nifty has been moving with violent swings on either side trapping both bears and bulls.

Let us look at the Lunar cycle and understand the overall impact on markets with moon phases.

Nifty daily chart – Lunar cycle

Nifty Neo wave pattern

Nifty first chart is showing Lunar cycle – both Full moon (Pournima pink highlight) and No Moon (Amavasya blue highlight).

We can see that since the low formed at 18838 levels in month of October 2023, prices have been forming a low and reversing up on every lunar cycle. The same can be clearly seen that after Full moon and no moon prices rallied for atleast 2 to 3 days.

The latest Lunar cycle was on 25^th January 2024 and prices again formed a low on the same day and continued the positive momentum despite of the volatility seen prior to the lunar cycle.

It is interesting to see correlation of stock market to Lunar cycles which is working very well. Do note that change in relationship of Nifty to moon cycles will be an indication of change in medium term trend i.e. if prices form a top instead of a low on Lunar cycle day we can expect negative reversal.

Nifty Neo wave pattern – Nifty overall fall was sharp and fast from 22124 to the lows of 21137. This was one of the biggest decline in entire rise. That confirms that the fall was wave a and we are moving up in form of wave b of a Flat corrective pattern. A flat correction is a 3-3-5 pattern and wave b needs to retrace beyond 61.8% of wave a.

As of now given the steepness of rise wave b is still ongoing and post its completion we might see wave c again taking prices lower.

The above scenario indicates we will see high volatile movement but within a big range. Option traders can accordingly form positions basis of the above methods of forecasting.

In a nutshell, Lunar cycle is working extremely well to catch reversals and Neo wave can help for price forecasting and possible path prices can traverse.

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