Nifty Elliott wave with Volume ProfileMar 06, 2023
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Elliott wave is GPS of market and helps in understanding maturity of trend. This combined with Volumes and Open Interest profile give insights into big player’s activity.
Below chart of Nifty shows Neo wave counts which is advanced concept of Elliott wave.
Nifty hourly chart:
Nifty Volume profile hourly chart:
Nifty Neo wave chart shows the entire fall from the top of 18880 in form of double corrective pattern involving x waves which connects two standard corrections together.
The first pattern was 7 legged Diametric followed by x wave and then a Flat corrective pattern. Post completion of wave c of Flat we are seeing sharp retracement on upside. This up move can either be wave x or start of bigger trend wave (c) higher. Confirmation of the same will be obtained on two stage confirmation technique as per Neo wave, which is on break of the upper trendline near 17950 levels.
Volume profile – For traders, it is crucial to see the levels where big players have been active as these levels will act as important support or resistance. As can be seen from second chart, there has been major activity near 17880 (futures) levels where the volume profile is the highest. This level is known as Volume point of control (VPOC). This indicates that prices have immediate hurdle of 17880 where major change of hands have taken place.
In a nutshell, combination of Volume profile and Neo wave is one of the best tools traders can use to derive high accuracy with good risk reward trade setups by understanding the maturity of trend, identifying key levels of reversal and taking positions in Futures & Options accordingly. As per above data as of now prices can be in buy on dips setup with volume profile support at 17670 (futures) and hurdle at 17880 levels.
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