Elliott Wave Analysis for Nifty Trading

"You cannot change the direction of the winds but you can adjust your sails as per it."

Successful Trading depends on how well one manages the uncertainities. It requires one to have the balance between having conviction to follow his belief and flexibility to recognize when to change the perspective .

Let us check out the EW counts at this juncture.

1. Please go through the basic EW insight that I have been following - Click Here
We are currently in the larger 'c' wave down of the 4th wave on the long term charts.

2. This 'c' wave will unfold in three waves down. Currently we may be in 'A 'or the 'B' wave. This 'A' may be unfolding in five wave structure(marked in black) or is completed in three waves and we are in the 'B' wave up (marked in red). The former is my preferred count as of now.(based on Weekly Indicators and Patterns)

3. The complex correction that we are seeing in the 4th wave of the 'A' or the probable 'B' wave may be marked as follows. 

As per the EW experts, Elliott Wave International -
There is an alternation within a complex correction . The correction may begin with a flat a-b-c construction of the A wave followed by a zigzag in the B wave. An illustration may help understand this .

This is a reference image of a complex correction within a larger bullish count .(opposite to what we are witnessing ,a bearish one ) 

4. In the Immediate term, we are in the 'C' wave of this complex correction ,the structure of which may be as shown below. The III rd wave of this is in progress which may /may not go up from the last close.The probable IV th wave of this 'C' may end near 5550 levels that is near the 4th wave of the lesser degree.

5. Alternate Count :

If the wave 4th of the 'A' will cross 5752 on closing basis ( the end of wave 1 ) ,alternate count will come into play (marked in red in the first chart ) .The Fibonacci targets of this wave will come to apprx. 5900 and 6100 level.

This has been discussed as the 'Dark Horse' count in couple of my previous Posts & Comments - Click Here

6. So a likely Positional play based on above observations may be -

Closing price of 5752 is the most important level. One may enter initial shorts (on completion of wave V of the ongoing 'C') with strict s/l  if fails to close above 5752 and then position size to play for the 5th wave of the wave 'A' .

Alternatively if closes above 5752 one may go long for the Fibo targets discussed above for the Wave 'B'.