As a trader most of the times we land up in a situation where we don’t understand from where to start applying wave counts practically after reading so much of theory.
The benefit of trading with the Elliott Wave Principle is that it allows you to anticipate market action so that you are ready for the next move. Elliott Wave rules and guidelines let you know when your outlook is correct or when it's time to cut your losses.
We always see the following charts with entry and protective stops at bearish and bullish markets in the books but how to apply practically is the main question.
In our training sessions we always focus on the practical way of applying Elliott Wave theory rather than theoretical. Below shows how well we applied Impulsive wave counts on JP Associate which helped our subscribers to derive trade.
Below was published on 4th March, 2013 before equity markets opened.
JP Associate 120 mins chart:
As shown above in 60 mins chart of JP associate, prices have completed wave 2 near 104 levels, thereafter prices moved lower in the form of wave 3 and made a low of 66. We can observe above, an internal wave count of wave 3 is crystal clear and followed each and every rule of Elliott wave theory. This is the power of Elliott wave counts which helped us to captured fall from 105-66 levels in this stock. This is merely one chart shown above using Elliott wave theory.
Within waves one, three and five, wave three is the impulse wave most likely to extend.At present, prices are moving in the form of wave 4. Generally, wave 4 is corrective and it form triangle, flat or simple zigzag pattern.
Educate yourself and be prepared for your next trades.
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