Rules and Guidelines for Elliott wave

hello everybody, iam a new guy to enter in to the forum

Dear friend,

i really admire your efforts. However, the rules you have laid down are muuch more more vast and complicated, i mean anyone building the system on the above rules is bound to make a very complex trading system. And even a very small part of system fails, it may cause the entire system to colapse because every part in a particular system is inter-dependent.

Now, have you really gone through the elliot-wave throughly! i am not insulting you, but you said that wave 2 cant be a traingle. This is false, there is low probability that wave 2 can be a traingle! Now, this small error can create a big failure in your advace wave counts ie. wave of higher degrees.

My friends, please make the system not simpler but simple for better results.

Thanxs,
Winston.

By Sharad Khandelwal - A Stock Market Vedic Theory analyst

"Compared to the last year's 3872-point fall, from 12671 to 8799, the current fall measures 2407 points, which is almost exactly 61.8% ratio to previous fall. Time-wise, both the drops have taken exactly the same number of days, i.e. 24 trading sessions. The current drop, therefore, appears slower than the previous one."

Technical Analysis by V Patil ICICI Direct.com

It appears markets are now ready to go up.

BIRDINFO Stock Rx - A Vedic Prescription for stock market

So we had stock exchanges in vedic times!!
What about limited stock companies?

Yeah,exchanges were always there whether present times or Vedic times.
Only the companies and methods of trade were different.

So how do we account for the difference between commodity being traded and the methods in vedic calculations?

By calculating the points for Kshiti, Jal, Pawak, Gagan, Sameera and doing the swot analysis.For details contact 919376168780 or email at krsnakhandelwal@*****.com

The Elliot Wave theory

Elliot discovered that the ever-changing path of stock market prices reveals a structural design that in turn reflects a basic harmony found in nature. From this discovery, he developed a rational system of market analysis.

Under the Wave Principle, every market decision is both produced by meaningful information and produces meaningful information. Each transaction, while at once an effect, enters the fabric of the market and, by communicating transactional data to investors, joins the chain of causes of others’ behavior. This feedback loop is governed by man’s social nature, and since he has such a nature, the process generates forms. As the forms are repetitive, they have predictive value.
Wave Patterns

In markets, progress ultimately takes the form of five waves of a specific structure. Three of these waves, which are labeled 1, 3 and 5, actually effect the directional movement. They are separated by two countertrend interruptions, which are labeled 2 and 4. The two interruptions are apparently a requisite for overall directional movement to occur.

At any time, the market may be identified as being somewhere in the basic five wave pattern at the largest degree of trend. Because the five wave pattern is the overriding form of market progress, all other patterns are subsumed by it.

The 5 wave pattern is often followed by 3 corrective waves labelled as A-B-C.
Wave Mode

There are two modes of wave development: impulsive and corrective. Impulsive waves have a five wave structure, while corrective waves have a three wave structure or a variation thereof. Impulsive mode is employed by both the five wave pattern and its same-directional components, i.e., waves 1, 3 and 5. Their structures are called “impulsive” because they powerfully impel the market. Corrective mode is employed by all countertrend interruptions, which include waves 2 and 4. Their structures are called “corrective” because they can accomplish only a partial retracement, or “correction,” of the progress achieved by any preceding impulsive wave. Thus, the two modes are fundamentally different, both in their roles and in their construction, as will be detailed in an upcoming section.
Wave subdivision

Waves can be repeatedly subdivided into lower degrees as follows:
Some observations

* Wave 4 never overlaps or enters the area of wave 1. An overlap means one shd consider the possibility of A-B-C corrective
* An exception to the above is a 5th wave ending diagonal
* Wave 3 is never the shortest.
* Wave 3 & 5 are related to wave 1 by a Fibonacci ratio (equality or 1.618 or 2.618)
* In any corrective, wave C is related to wave A by a Fibonacci ratio (equality or 1.618 or 2.618)
* In any corrective, wave B is related to wave A by a Fibonacci ratio (0.618 or equality)
* Compared to impulses, correctives are difficult to trade. There are more than 23 types of patterns. Sometimes the best thing to do is let the market make up its mind and then decide what to do.
* In an impulse, it is common for a wave 3 or wave 5 to extend.
* Any correction following a 5th wave extension will typically end at wave 2 of the extension
* Alternation: if wave 2 is a sideways correction, wave 4 will be fast/ straight/ swift (and vice versa).
* Waves are fractal and principles apply across all time frames. A 1-2-3-4-5 impulse could be a part of larger A which in turn can be a part of a larger 1

A triangle in itself is a 5 structure with overlapping sub-structure,more often than not
a)Triangle precedes exhaustion
b)final consolidation b4 last run up
Thats because psychology of triangle is indecision between the sellers and buyers in the market.

Wave 2 cannot be a triangle at all
because wave 2's are just like B waves,(sucker punch),a B wave creates a false illusion of a bull rally and by definition B waves are 3 structures.

Mind you,
In Bull markets(uptrend)wave 2 is down and wave B is up
In Bear phases(downtrend)wave 2 is up and wave B is down.

Hope this helps.

Also lets not forget to add the 4th and 5th legs along with the Chicken Wing and then shake it for 15 minutes while doing the cha-cha-cha shake yourself.

From the CV Rules and Guidelines of making butter chicken