Saturday, March 29, 2014

Why Learn Elliottwave (Maharastra bank)

Hi friends,
                    Weekends usually demand a descriptive knowledgeable post,Continueing
with my Heading Why learn Elliottwave ,Would share an example how a big move
can be captured using Wave principle .
Now time has changed any news or calamity which happens in any part of the world
reaches to you in minutes ,And if its directly or indirectly related to a stock it affects
its price spontaneously,Unlike old days when things usually took more than a day.
My point in saying this was to show how the scenario has changed and envirnment
has changed and it requires a trader to adapt to the changing situations along with
changing market cycles.
A trader has to adapt to the changing time ,Market is evolving continuously so to have
edge over other traders one need to be well equipped and ahead of others.
Today i am giving an example of how a big move can be captured
Let me put the chart of Maharastra bank.
Why Learn Elliottwave (Maharastra bank)
I have labeled chart extensively
So that one can figure out
what the stock is doing.
We had a time consuming
abc done over 3 years ,
The interesting thing is
A=C (yellow ),Even the
abc of bigger B wave ie in
white colour also shows
a=c.The bigger ABC
we can easily see 5 waves in

C wave which gives the confidence that the wave is nearing end,Still to be on safer side
we should have a trendline drawn from 2nd top to 4th top and once that trendline gets broken
we can be sure of that a new wave has started.The new wave which has started should target
55,Once thats come we can figure out next target.This stock has already done 20% move
after breakout which is a great move to capture.
This is just one example of trade setup elliottwave principle helps us to find with defined
risk reward.


Ankit said...

As per this chart,yellow C is lower than yellow A, does that mean intermediate trend is down?

Rish said...

Ankit i didnot understand your question yellow c has to be lower than yellow a.

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