Oct 242012
 

Over the last four years or so, this blog has been presenting you with Elliott Wave Analysis of various instruments in a variety of markets. I have shared with you veritably a treasure trove of information, and have spent countless hours answering innumerable questions from young and experienced traders alike. All this went on despite having the responsibility of running the treasury of a bank. Whether I was at an airport waiting to board a flight, or by the seaside with my kids, I cared enough to give you freely of my time. So it was a great pleasure to see the spontaneous response from readers when I finally launched a paid service where I will share my trade ideas. Thank you very much. Some of you might be disappointed because I have pitched the price relatively high. I did that for a reason. I really wish to keep the number of members there manageable. Secondly, that service is meant for traders who are willing to be patient for the right kind of set ups. There is a bunch of people out there dishing out trading advice every day, and sometimes several times a day for much less. I don’t belong there, neither do members of our exclusive club. Having said all this, I wish to reassure you that this blog will continue to stay alive, because I have promised you that this is a ‘living book’ – an extension of “Five Waves to Financial Freedom”. However, you won’t find as many updates as before because of increasing demands at work and elsewhere for my time.

For many weeks now there have been numerous requests for Elliott Wave Analysis of India’s stock indices. Following the recent flash crash on the Nifty, that chart is screwed up. The exchange has refused to fix the price, even though the trades were cancelled. So I am turning my attention to the Sensex index. There are some interesting things to be noted in the following six charts. I would urge you to study each one of them carefully and see if you can follow how I think about these patterns. I don’t exclude anything. I approach the markets with an open mind, always aware that I could be wrong. I start off with an idea, a hypothesis. I look for additional clues that validate the hypothesis, and then decide where to get into the market. In this blog, I have repeatedly said that I am not offering any trading advice. You come here only to learn. Yet, the hypotheses are there, and if you were alert enough, you could have taken numerous low-risk trades that turned out to be extremely profitable. True, some ideas turned out to be wrong. But that risk is always there. A sound knowledge of Elliott Waves would allow you to choose very low risk entry points and this is why so many of you are attracted to learn it. Enough! Time to look at the charts. As always, there is more on the chart than here. Enjoy and share with others. Ramki.

Aug 302012
 

When we know that we are in the midst of a complex correction, we should expect the unexpected! India’s stock indices are a clear example. I have posted a few times about the NIFTY. Here is a look at the Sensex for a change. Elliott Wave and Fibonacci relationships abound. I have only shown you some of the main ones here in the BSE charts. Today’s post is to be used as a learning experience. One clue for you: I have shown the July low prominently in some of the charts. The reason is when we finish witha 5-wave pattern up, and then immediately get a new 5-wave pattern down, the implications are very suggestive. Enjoy.

Jan 042010
 

BSESN 4 Jan 10Two consecutive closes above the prior significant high means we should re-evaluate the wave counts and this has been done on the chart. The main suspect until this time is what I have labelled a 5th wave of the third wave. That looks like a 3-wave movement withthe 3rd leg measuring the same as the first leg. However, we now have to go along with the view that the 3rd leg was actually an extending wave within the aforesaid 5th wave itself, which is why we got a swift down move as a 4th of the next degree. We are then currently in the 5thwave of the sequence that started off back in Q4 of 2008. The targets of this fifth wave are mentioned on the chart, and we should go with that view in our trading activities until proved wrong by subsequent movements.

Aug 162009
 

BSEN17Aug09Sure, India now has a stable government in place. But listen up, folks. Are we not getting ahead a bit too soon too far? After all, the news from the weather man has been anything but exciting, with a failed monsson. Add to that the swine flu problem, not to mention the quarrel between the Ambani brothers, and one starts wondering what the hell is the Sensex doing up here. Sell your stocks before your cousins wake up!