Elliott wave is the most important forecasting engine that we use in order to derive the price targets with crucial stop levels and the path prices can follow. At times when the wave pattern becomes complex it is important to combine powerful indicators like Ichimoku Cloud that can further increase the conviction on the given Elliott wave pattern.
On 22nd March we published the webinar on how Ichimoku is sending the warning sign and we are seeing a move of more than 120 points down on Nifty today – check the webinar here
Now see the below chart of Nifty that has the Elliott wave pattern and the Ichimoku Cloud combined together:
Nifty 30 minutes chart:
If you observe closely there is lot of information on the above chart. Nifty has broken below the Cloud of Ichimoku indicator which further confirms that the uptrend which started from 10700 is complete at the highs of 11572 and the fall is a bigger degree move. Had it been another wave x we would have seen bounce back from the cloud which did not happen.
Any pullback on upside can now be restricted to the cloud. The same was intact throughout the uptrend and so we were in buy on dips mode. Now as prices have shifted below the cloud we might now be entering into sell on rallies and so one need to change the strategy accordingly. This is vital information for forming a trade setup.
In addition to above there is a lot more clarity that Ichimoku provide when combined with Elliott wave counts. We have just shown a few ways in which it can be used.
Attend the Most advanced Training on Technical analysis – Elliott wave, Neo wave combined with Ichimoku Cloud and Hurst’s Time cycles scheduled on 6th and 7th April 2019 at Hotel Radisson, Mumbai. Only a few seats left. Also get 6 hours of Elliott wave training video links before the training. Register here
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