Even if you have no interest in this Indian stock, there are valuable lessons to be learned from every chart posted in Wave Times. You can use the techniques I am describing here on any well traded instrument in any financial market.
Nice analysis of REC on Elliot Wave. Would be glad if it would be possible to post likewise analysis on S&P CNX Nifty and MTNL. It seems that market has forgotten the stock after it recently hit 10 year lows around Rs. 30.
I have gone through many of your charts in this blog and always had a curiosity what is so significant about 70.7% ? It is not a fibo number, generally after 61.8% one can reasonably target 100%, (although there is 76.4 in between but not much importance is given to it by analyst).
Dear Ramki,
As a follower of EW,with Prechter’s book EW Principle being my guide,I am surprised to see you counting zig-zag ABC with C doing more than twice of A. My experience with EW (though it is not as long as yours) tells me that C=A in most of the cases in Zig-zags and it is only in Expanded Flats , where B=1.382*A , that C can do more than 1.618*A.
So we would be better doing a Double zig-zag in REC rather than a single one.
Baaki—-TO EACH HIS OWN—
Subjectivity is the hallmark of EW but guidelines are there.
Hi Sant Kabir, Thanks for your comment. I have made it a habit to not worry about my counts too much so long as it helps in getting the direction right. (I am capable of being wrong there too!) So you are right in pointing out I am different!
HI Surjeet, Thank you for your comment and request. UNfortunately, I won’t be able to look at individual stocks as and when members request for the same. The exception is when something compelling happens in a stock or an index, something which I believe will be of interest to a whole bunch of people. WaveTimes exists to showcase the practice of elliott waves. Good luck.
Even if you have no interest in this Indian stock, there are valuable lessons to be learned from every chart posted in Wave Times. You can use the techniques I am describing here on any well traded instrument in any financial market.
7 Comments
Nice analysis of REC on Elliot Wave. Would be glad if it would be possible to post likewise analysis on S&P CNX Nifty and MTNL. It seems that market has forgotten the stock after it recently hit 10 year lows around Rs. 30.
Sir,
I have gone through many of your charts in this blog and always had a curiosity what is so significant about 70.7% ? It is not a fibo number, generally after 61.8% one can reasonably target 100%, (although there is 76.4 in between but not much importance is given to it by analyst).
Thanks,
Hi rainmaker, 0.707 is the inverse of the square root of 2, just as the inverse of 0.618 is 1.618
Dear Ramki,
As a follower of EW,with Prechter’s book EW Principle being my guide,I am surprised to see you counting zig-zag ABC with C doing more than twice of A. My experience with EW (though it is not as long as yours) tells me that C=A in most of the cases in Zig-zags and it is only in Expanded Flats , where B=1.382*A , that C can do more than 1.618*A.
So we would be better doing a Double zig-zag in REC rather than a single one.
Baaki—-TO EACH HIS OWN—
Subjectivity is the hallmark of EW but guidelines are there.
Hi Sant Kabir, Thanks for your comment. I have made it a habit to not worry about my counts too much so long as it helps in getting the direction right. (I am capable of being wrong there too!) So you are right in pointing out I am different!
hi sir, can you please update you count on REC Ltd
HI Surjeet, Thank you for your comment and request. UNfortunately, I won’t be able to look at individual stocks as and when members request for the same. The exception is when something compelling happens in a stock or an index, something which I believe will be of interest to a whole bunch of people. WaveTimes exists to showcase the practice of elliott waves. Good luck.