Trade with an edge using ELLIOTT WAVES

The stock market provides ample opportunities to make money. All you need to do is to stay alert, and have a watch list of stocks that you wish to be involved in. Typically, these stocks should be well traded, i.e. there should be wide participation in order for Elliott Waves to work. In my Premium Service, we only look at well traded stocks. However, the technique works well in most traded instruments. In today’s example, I will show you two charts of Burnpur Cements. I really dont know if this is a well traded stock, but when I was scrolling down the Indian Stocks alphabetically, and managed to reach “B”, this stock looked interesting. So I did some quick analysis and thought of sharing with you. You can see that I haven’t done the extensive analysis that usually goes in to my recommendations. This example is only to show you what is possible if you remain alert, meaning you should not quickly run to the market to buy this stock without doing a full analysis. Elliott Waves works wonderfully well in the stock markets too. However, don’t be fooled into thinking that all you need to know is how to compute a few Fibonacci ratios and extensions. Elliott Waves is more than that. I normally use Fibonacci relationships to confirm my wave count and to compute targets (not the other way around!). With best wishes

The Pound has been steadily gaining ground and is poised to reach the 61.8% retracement of its last swing lower. This comes at 1.5664, and is worth looking at closely. Besides, if we consider that the recovery is a double zigzag, the second wave ‘c’ has a 123.6% measure of wave ‘a’ at 1.5666. If we look at the internal waves of wave ‘c’ we see that the 5th minor wave will have its 61.8% measure of the distance from 0 to 3 at 1.5680. We also see that an Elliott wave channel top comes around that level. Considering all this, one might consider a SMALL short position at 1.5663 with a stop at 1.5683. If stopped, one should wait for 1.5778 and sell a bit more aggressively there with a stop at 1.5798. These are really counter-trend trades and I present them here so you could learn how I think about waves. It is not a recommendation!