#banknifty #ElliotWave analysis on monthly time frame:-

5 Feb 2021

#banknifty #ElliotWave analysis on monthly time frame:-

Wave 1 is from 2110 to 10,774 is of 8,634 points.

Wave 2 is from 10,774 to 3,314 is of 7,460 points, corrected here almost 86% of wave 1

Wave 3 is from 3,314 to 32,613 (29,299) extended 253% of wave 1

Wave 4 is from 32,613 to 16,116 (16,497) corrected almost 56% of wave 3

Move from 0-3 is 2,110-32,613 = 30,503 points

"Calculation of Wave 5: To calculate expected targets of wave 5, just count total move from the start of wave 1 to end of wave 3 (i.e. total move till wave 3) and add 38% and 61% at the end of wave 4. The resulted levels will be your expected targets. Extended 5th wave can go above 70% till 200%."

61.8% of 30,503 : 18,850 , Wave 5 projection is 16,116 + 18,880 : 34,966

78.6% projection is 40,091

100% projection is 46,618


Note:-

Fibonacci Ratio Relationship

• Wave 2 is 50%, 61.8%, 76.4%, or 85.4% of wave 1
• Wave 3 is 161.8%, 200%, 261.8%, or 323.6% of wave 1
• Wave 4 is 14.6%, 23.6%, or 38.2% of wave 3
• There are three different ways to measure wave 5. First, wave 5 is inverse 123.6 – 161.8% retracement of wave 4. Second, wave 5 is equal to wave 1. Third, wave 5 is 61.8% / 78.6 % / 100% of wave 1-3 (total up-move till wave 3)

Regards,
SG