Charting with Elliott Waves

17 jul

Understanding how to do Technical Analysis of any chart based on Elliott Waves

This analysis is for educational purposes only and should not be considered as trading advice. Multiple scenarios are possible in the real market, and there is a risk of being wrong. It is essential to consult with a financial advisor before making any trading or investment decisions. We are not responsible for any profits or losses incurred based on this analysis.

Wave Rules:

Wave 2 cannot retrace more than 100% of Wave 1.
Wave 3 is never the shortest wave.
Wave 4 should not overlap with Wave 1's price territory, except in diagonal triangles.

Applying Elliott Wave Theory
Elliott Wave Theory is a powerful tool for traders, but it requires practice and a deep understanding of market psychology. By analyzing wave patterns, degrees, and Fibonacci relationships, traders can gain insights into potential market trends and make informed trading decisions. It is important to combine Elliott Wave analysis with other technical indicators and risk management strategies to enhance the accuracy and reliability of market forecasts.

Elliott Wave Theory provides a comprehensive framework for understanding market cycles and predicting price movements. By mastering its principles and applying them with discipline, traders can enhance their ability to navigate the financial markets and capitalize on emerging trends.

Let's understand study of this chart

Current Wave Structure
Primary Wave Count:
- The chart illustrates a completed five-wave impulse sequence (1-2-3-4-5) followed by a corrective phase.
- The primary impulse wave (labeled in red) has completed its cycle, marked by a significant peak at Wave 5.
- The subsequent corrective wave (labeled in blue as (4)) has also completed, indicating a potential beginning of a new impulse sequence.
Subwave Count:
- The internal structure of the primary waves shows clear subwaves, especially within the third wave, which is typically the strongest and longest.
- The chart depicts detailed labeling of smaller degree waves (i-ii-iii-iv-v), ensuring adherence to Elliott Wave principles.

Recent Breakout Analysis
Breakout Confirmation:
- Recently, the price has broken out from a consolidation zone, supported by increased trading volumes. This is a positive sign indicating strong market interest and momentum.
- The breakout occurred after the price retested the previous resistance level, which now acts as a support. This successful retest enhances the credibility of the breakout.

Future Projections
Impulsive Bias:
- Based on the wave structure, the stock appears to be in the early stages of a new impulse wave. This suggests a bullish outlook with potential for significant upward movement.
- The immediate target for this impulse wave is the 1.618 Fibonacci extension level at INR 2,976.60, aligning with typical Elliott Wave projections for Wave 3.

Invalidation Level:
- The nearest invalidation level for this bullish scenario is marked at INR 1,651.40. A break below this level would suggest a re-evaluation of the wave count and the current bullish bias.

Conclusion

The technical analysis of Dalmia Bharat Ltd. indicates a favorable outlook for continued upward movement, supported by a clear Elliott Wave structure and recent breakout confirmation with good volume. However, traders should monitor the invalidation level closely.

I am not Sebi registered analyst. My studies are for educational purpose only.
Please Consult your financial advisor before trading or investing.
I am not responsible for any kinds of your profits and your losses.

Most investors treat trading as a hobby because they have a full-time job doing something else.
However, If you treat trading like a business, it will pay you like a business.
If you treat like a hobby, hobbies don't pay, they cost you...!

Hope this post is helpful to community
Thanks
RK💕

Disclaimer and Risk Warning.

The analysis and discussion provided on in.tradingview.com/u/RK_Charts/ is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.