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SBICARD: Technical Outlook, Breakout & Elliott waves AnalysisCurrent Zoomed view Daily MACD turned Positive Trishul Activated in RK-Brahmastra 4Hourly Breakout Elliott Wave Analysis of SBICARD (SBICARD) Overall View Zoomed View Overview: SBICARD has displayed a promising Elliott Wave setup, indicating the potential unfolding of a bullish wave cycle. Recent breakout movements, supported by strong volumes and positive divergences across multiple time frames, suggest a bullish bias. With various technical indicators signaling bullish momentum, the stock appears poised for further upside. However, it's crucial to exercise caution and implement proper risk management strategies. Detailed Analysis: Wave Cycle Completion: On the weekly chart, SBICARD seems to have completed a larger degree wave cycle, consisting of Wave ((1)) and Wave ((2)). This suggests a significant bullish trend underway. Current Wave Structure: Presently, the stock appears to be in Wave ((3)), which is typically the strongest and longest wave in Elliott Wave theory. Within Wave ((3)), we have likely completed one lower degree Wave (1) and Wave (2), indicating the initiation of a new bullish impulse. Positive Divergences and Breakout: Multi-time frame positive divergences, combined with a breakout accompanied by substantial volume, support the bullish bias. Both trend indicators and oscillators across various time frames align with the bullish sentiment, providing further confirmation. Bullish Signals: The activation of both Brahmastra and Trishul on the RK-Brahmastra indicator, along with all green signals, indicate strong bullish momentum. The current price action suggests the unfolding of Wave iii of (i) of ((i)) of 1 of (3), highlighting the potential for significant upward movement. Price Targets: If the wave counts align perfectly, SBICARD could target levels near 1050 (Equality of Wave (1)) and 1278 (1.618 Extension of Wave (1)). Strength above 790 levels could further bolster the bullish outlook. Risk Management: It's essential to note the invalidation level at 655 on the lower side. A breach of this level would indicate a potential deviation from the expected wave counts and warrant a reassessment of the bullish scenario. Traders and investors should prioritize risk management and employ appropriate stop-loss strategies to mitigate potential losses. Educational Disclaimer: This analysis is provided for educational purposes only and should not be construed as trading advice or tips. Traders should conduct their own research and consult with financial professionals before making any investment decisions. Proper risk management is crucial in trading, and investors should be aware of the inherent risks involved in the financial markets. Conclusion: SBICARD presents an intriguing Elliott Wave setup, indicating the potential for a bullish wave cycle. Positive technical signals, along with strong volume breakout movements, support the bullish bias. However, traders should exercise caution, adhere to risk management principles, and remain vigilant for any changes in the market dynamics. 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 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.
NSE:SBICARDLong
by RK_Chaarts
8
Tesla : After the rain comes sunshineTesla had a nice rally from 100 to 300 in an impulsive wave up after an ABC corrective wave from the all time high. Since hitting 300 price has moved down in a corrective wave lower. This move is a wave 2 and could go to 180 ( 76.4% of wave a of 2 + 61.8% retracement of wave 1 ) or even to 150 ( equal legs inside wave 2 + 76.4% retracement of wave 2 ). Line in the sand for this wave 2 is the 101.81 low, anything below this invalidates this count. Look for price to move higher in an impulsive wave as wave 3 will start after hitting the wave 2 low. Eventually price will break the trendline from the all time high, move above 300 again and hunt for the all time high. Alternative count would have price in a wave C instead of wave 3. This would still break 300 but will turn around down before hitting all time highs. This would also mean that price will break the 100 low, or ...more rain ahead...
NASDAQ:TSLALong
by jdemunter
Elliott waves - a tool to predict the most rapid ups and downsOn January 22, 2020, the rising cycle on the S&P ended and the declining cycle began. Apart from this one tool, there was no indication that we were about to experience historic declines and the biggest panic in the markets so far. On March 6, 2020, the correction ended and the oil market entered a downward cycle. Only one group of traders was not surprised by this, they were prepared for it and made money on the huge declines. The others were able to read about the reasons for the declines in the newspapers - but only after the fact. This is not a coincidence There is one group of traders who systematically discover market turning points, regardless of the news hype and expert opinions. While others panic, these ones are prepared... That tool is Elliott Waves. A large number of institutional traders use Elliott Waves, either as a main or companion tool. One way to do this is to analyze closed structures. If an upward structure closes then we know that we have declines ahead. In January, it was clear that we were facing declines at a minimum to the 2500 levels on the S&P (that is, by about ¼, we just didn't know how fast they would happen). But within a few days the real drama began and the market fell even lower. Elliott waves work on currencies, commodities, stocks and indices (there is some specificity here, due to the composite nature of indices). Waves also help predict the movements of cryptocurrencies. A personal note about Elliott waves I have been watching waves for about 10 years, accounting for more than 6. Like many people, I consider it the most advanced tool of Technical Analysis. It is more than 90 years old, and is used by many traders from large banks and mutual funds. An in-depth understanding of wave action will come, I believe, in a few years with the development of Artificial Intelligence. Then we will be able to understand the interaction of factors that affect the price. Our current model is only in the preliminary stages of construction. The biggest benefits of using Elliott Waves No matter what system you use Elliott analysis will show you the possible course of the market situation. Sometimes it is well predictable. You will avoid many unpleasant surprises that will surprise other traders. Many traders use Elliott analysis to forecast possible movements, and use their systems to enter when the expected movement has already materialized. In other words, they trade after confirmation. Combining Wave Analysis with other Technical Analysis tools increases the likelihood of good entries. Focusing on: 1. trading in the direction of the trend indicated by the waves, 2. and on the strongest movements allows you to improve your results. Elliott Analysis helps to indicate which entries are better or best in a given market situation. It allows you to approximate the ranges of movements - both impulses and corrections. It is a good way to look independently at the TP (take profit of a movement). Wave analysis helps identify situations preceding strong directional movements. In such a situation, if you use another system you may have several, a dozen or dozens of good signals in one direction. Such situations are rare, but... they allow you to systematically build capital with low-risk entries. I will describe these situations in a moment: how to recognize them, how to prepare, how to enter them. Elliott analysis helps determine whether the market is in an impulse or in a correction, and often helps determine when, or at what level, the correction will end and we can have another strong impulse. Elliott analysis often provides early signals of the end of trends and the ends of corrections. Why do Elliott waves work? In part, it is a selffulfilling prophecy. Since the 1970s, waves have been widely used in large companies at least, as a context to describe market behavior. There are also funds, or divisions of investment banks using waves as a primary tool. Knowing exactly why they work is a matter of research. We will have the right answer in a few years. It will include the impact of seasonal cycles on demand and supply, the impact of other types of cycles, statistical analyses of market behavior and anomalies, analyses of social moods, analyses of the impact of production processes and supply chains, the context of political events (in the case of commodities, gold and currencies). Elliott waves may be the missing piece of the puzzle to build, test and refine the highest form of Artificial Intelligence in trading - General AI. What tools do the greatest traders use, or how it all started? I have often wondered what tools are used by the greatest, those who move the markets. This is how my adventure with waves began. One day I picked up George Soros' book "The Alchemy of Finance". The foreword was written by prominent billionaire trader Paul Tudor Jones. In the second paragraph, he mentioned Elliott waves as a tool that captures the economic, social and political context into one. At this point I stopped reading further, my interest turned to waves, I thought it was worth learning more. Today (2020) the situation has changed somewhat. For a dozen years or so, there has been an increase in the use of mathematical strategies (quant strategies) based on the study of statistical relationships. It has reached the point that today already most orders are executed by algorithms (more than 50% of the volume). Algorithms are based on a few market observations (underpinned by strong mathematics) and virtually every major strategy supports... the natural behavior of the markets. That is, markets act the same as they used to only... more. Certain classes of movements are stronger because a lot of algorithms go into them. This means that Elliott waves (in general) work the same way, only some movements are amplified. What tools are the biggest traders using, that is, what will the future look like? Algorithms analyze many types of data and, based on this, type the size and location of entries. Among the data we have fundamental data, alternative data (very fashionable for about 3 years), statistical data, technical data (in the sense - using technical analysis, but for now quite simple). This will be the future - currently built algorithms will use dozens of sources, analyze signals, manage risk. I believe that Elliott waves are one of the most advanced tools of technical analysis, and sooner or later they will be included, as one of the decision-making factors. Perhaps one of the main ones, just as the big "manual" traders do today. And this means one thing - waves will work even better. If one has experience with waves then one knows that one can try to account for all impulses and corrections, but from a trading point of view it makes no sense - there is no money there, the movements are uncertain and short. It is best to focus on the best situations, the least risky, and build entry strategies based on them - manual and algorithmic. The best will certainly be the well-known: wave 3, wave C, setup for wave 3 in wave C, trade for a reversal after a wedge in wave 5. There are also several less well-known. What's the fastest way to learn the waves? There is not much choice. The topic came up again in a conversation with a bank trader a few months ago. His new job uses waves, while he had his first contact with them. His problem was that he wanted to learn them as soon as possible - at least enough to understand the analysis he gets from the Analysis Department. He asked about books, about training, and for the first time I began to wonder what to suggest to someone who wants to learn waves quickly? The problem with current books is that there are too many words in them and not enough examples. In particular, not enough examples of waves and situations that traders most often trade on. Learning Elliott waves requires having a very large number of good examples. This is the fastest way - reviewing how the price drew impulses and corrections in the past. After a while, you learn to intuitively recognize possible settlements and set-ups to trade. This also applies if you want to use external analysis, you need to have your own independent view. Many details come out only when analyzing a specific chart. In a few years, with the maturation of AI, having alternative data and mathematical statistics, we will be able to determine which settlement - basic or alternative - is more likely. What are both types of settlements - will also show with examples. This is a key thing when building larger positions. One of the best books for waves The best book I know for waves is the position written by trader and head of the Technical Analysis Department of Union Bank of Switzerland (today's UBS) Robert Balan - head of global technical research (London AND New York). The book "Elliott Wave Principle" was recognized by the London Society of Technical Analysts as "the best book ever written on the subject". Indeed, it is the best. Few words, lots of diagrams and explanations. Due to the time (it was written in 1988) and publishing limitations - it is also not able to quickly convey the essence and show it with a large number of examples. In the meantime, several "shortcuts" used by wave traders have also been created, and I think they are also worth showing. The idea is to systematically repeat market patterns that are fairly easy to identify. I will show a few of them, because they help to better understand the operation of waves and for beginners can be a great help. A few sentences about waves in the context of the upcoming Artificial Intelligence revolution in trading Waves can complete the picture of market behavior when we use machine learning techniques. I think this will allow us to create an early warning system - when the characteristics of the market can change dramatically in a few minutes, when the algorithm holds a position or builds it. The market can go from weak, corrective behavior with low volatility to huge volatility, or when a strong and violent movement suddenly changes direction. These are typical problems known, predicted and solved by Elliott waves. Typical wave behavior (sudden changes in volatility /volatility/ and direction) is critical to the selection of samples on which we build the model. And here an important note - in addition to other characteristics of sample selection, we must have a way to estimate these two factors, otherwise any model we create will produce systematic losses. Every single one, 100% of the time. Good use of FE can improve both the profitability of the models and speed up the calculations, because we will take into account the (dramatic) variability in the nature of the data (strong variance change). By good use here I mean understanding, finding the regularity that governs consecutive cycles of low and high variance. This is a rough mathematical description of the situations that Elliott waves describe. A short note for beginners and intermediate learners You do not need to be able to account for all waves and every situation, because in retail trading it is not necessary. Stick to the best situations. The simplest ones. Waves in a nutshell: Elliott waves are used, as a tool to show the context of movement by professional traders. Major algorithmic strategies (quantitative strategies) amplify the action of Elliott waves in the market, based on several typical strategies replicated statistically. Over the next few years, there will be a struggle to create better forecasting tools to get into movements faster and build larger positions ahead of other participants. Nowadays, Elliott waves can serve you as a source of additional strategies as markets become more crowded with algorithms. They can also be used to find even better timing of entries so that positions get in before others. If you liked this post, give it a boost 🚀 and drop a comment so we know to publish more for you. Cheers!
Education
by drSwierk