Nifty 50 View . Trend Analysis.

Hey Everyone,

Crazy week post "weekly no body Doji candle" , saw both buying and selling pressure as indicated by candle, both high and low of Doji candle is tested.


New Information ---->

Anyway....I wanted to share one learning with you guys which i will show you in the chart, how market fooled the analysts and is continuing downtrend.

I hope you guys must have heard or read about Elliot waves and one learning is that Wave 3 is the biggest of all waves.

But But But (people who already know can ignore).

There is a special type of impulsive wave called " leading diagonal" and also one more called "ending diagonal" . ( will be interesting will see this on Nifty chart)

What is leading diagonal ( Ending diagonal will see later some other time)
This is a Special type of motive wave which appears as subdivision of wave 1 in an impulse or subdivision of wave A in a zigzag. ( you can google and see who the structure is).

Whats the connection with Nifty?
From ATH, when market started correcting and it made wave 1 and wave 2 , then it made a wave 3 which is shorted than wave 1 and reversed to form wave 4.


1st wave - ( 1588 points fall) from ATH
3rd wave - ( 1399 points fall) and market made wave 4 fooling every one that this is not wave 3 and its a small correction.
But what market did later was after forming wave 4 it fall sharply for (1275 points) completing wave 5. Since its an impulse wave, it has to complete 5 sub waves. More info down ( theory)

------------------------------------------- So much info-------break----------------------------------------

How did market made wave 5 when wave 3 failed to be the longest wave of Elliot Model?
So much to write to come to this point.

-----------Impulsive wave------------------
Here comes the leading diagonal, when Elliot model was introduced in 192X year , there is no concept of this diagonal impulsive moves.
But as years passed and models developed, this new type of impulsive waves are surfacing on charts across the world indices. ( lot of people might already know this but this is only for learning).
Major identification of leading diagonal is the price action forming a "Wedge" pattern.
We also have a contracting leading diagonal and expanding leading diagonal. ( check google for more info). These are now termed as impulsive waves.

In a "contracting leading diagonal" , Wave 1 > Wave 3 > Wave 5 . fall in points -> 1588 > 1399 > 1275. Opposite case in expanding leading diagonal( wave 5 will be more than wave 3 than wave 1) . Each down move is smaller that previous down move ( yes, its true). Then we saw a nice up move making everyone forget about wave 5 and back to business ( from last week of November) but market formed the Wave B of ABC corrective wave secretly and started brutal fall)

This resulted in market forming the "Subdivision of wave A in a zigzag" Pattern. which is a 5-3-5 ( ABC move). This is enough information to say market is gonna fall , because it has to complete Wave C. There is no other option. We are going to see a nice down correction, Sub wave 3 of Wave C is still going on as per my understanding.

All Fib levels are shown on chart.
Remember Wave 5 cannot be more than Wave 3 in Wave C and once wave 4 is completed , we can estimate minimum TP levels and more.

Will see later how market unfolds.
Happy Trading,


Cheersss!!!!

AS always, this is a mere idea on how market unfolds itself in wave structures ( especially Fractals). Please take advice before taking any action.